Held, (i) In computing the valuation of plant and machinery, only the cost price/purchase price of the equipment invested by the Assessee had to be taken into account. Expression "investment" in plant and machinery was not subject to the impact of depreciation in the value of plant and machinery. Since Assessee's investment was more than 5 lacs before said period in question and since the investment continues to remain unchanged, Assessee was not entitled to exemption from payment of sales tax either under the Rules or under the notification.
(ii) Whether interest on tax can be charged only after quantification of tax liability by Assessing Officer.
(ii) Interest was compensatory in character and was imposed on an Assessee who withheld payment of any tax as and when it is due and payable. Where tax due on the basis of the return has not been paid before the expiry of the last date of filing of such return, provision of Section 31(2) would apply to the recovery of such demand for the amount of tax due. Hence Assessee would be liable to pay interest even before quantification of tax liability.
