Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Sugarcane (Control) Order 1959-Sections 13(2) Tamil Nadu ·General Sales Tax Act 1966-Clause 5-A 24(3) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Sugarcane (Control) Order, 1966-Clause 5-A; Tamil Nadu General Sales Tax Act, 1959-Sections 13(2), 24(3)-lnterest on non-payment of tax Sugar producers purchasing sugarcane required to pay a minimum price and additional price under Clause 5-A which is determinable only at the end of sugar year-Assessee filing monthly return and paying tax on minimum price-After determination of Clause 5-A price, assessee filing revised return and paying tax-Assessing Officer demanding interest on the Clause 5-A price from the date of purchase of sugarcane till payment of tax-Sustainability of-Held: Clause 5-A price is determinable only at the end of sugar year, thus could not be included in the monthly return-Therefore, monthly return not showing clause 5-A price would neither be incorrect nor incomplete-Interest becomes payable only when the tax demanded, is not paid-Since assessee paid tax even before the final assessment took place, the claim of interest u/s. 24(3) is not sustainable. By virtue of Clause 3 of Sugarcane (Control) Order, 1966 the sugar producers were required to pay the minimum price of sugar immediately on purchase of sugarcane. In addition, by virtue of Clause 5-A, an additional price was also payable. The determination of additional price was dependent on the amount (in rupees) of sugar produced during sugar year, which could only be determined at the end of the sugar year and not earlier. In view of this, State Government advised the sugar producers to pay a price, which was higher than the minimum price. 'Appellants are the sugar producers. In their monthly return, they showed their turnover on the basis of minimum price paid by them and paid tax thereon. They indicated the additional price, which they had paid as per the advice of the Government but did not include it as part of turnover and did not pay tax on such additional price. When the price under Clause 5-A was fixed the appellants filed a revised return and paid tax on that. Thereafter, assessment order was passed, demanding interest under Section 24(3) of Tamil Nadu General Sales Tax Act, 1959 on the price fixed under Clause 5-A from the date the sugarcane was purchased till the date payment of tax by the appellant. The demand was challenged before the Tribunal which dismissed the same. Writ Petition filed before the High Court was also dismissed. In appeal to this Court, the appellants contended that the price fixed under Clause 5-A would only be known after it was determined and that till the Clause 5-A price was announced it would not be includible in the returns; that the advances given as per the advice of the Government are mere ad-hoc payments and that these advances do not constitute price and thus not includible in the monthly turnover of the Appellants; and on a plain reading of Sections 13 and 24 of the Act, no interest can be levied unless and until an assessment has taken place and a notice of demand has been issued and tax had not been paid within the time specified in the notice of demand. |
Judge | Hon'ble Mr. Justice S.N. Variava |
Neutral Citation | 2005 INSC 247 |
Petitioner | D. Parry (india) Ltd. |
Respondent | Assistant Commissioner Of Commercial Taxes, Chennai |
SCR | [2005] 3 S.C.R. 1144 |
Judgement Date | 2005-05-03 |
Case Number | 6448 |
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