C form under cst act, 1956
AJOY KR. MUKHERJEE
(Querist) 05 June 2013
This query is : Resolved
IS THERE IS ANY PROVISION FOR CHARGING INTEREST IF ANY DEALER CAN NOT PRODUCE THE CENTRAL DECLARION OR CERTIFICATE i.e. "C" FORM, "F" FORM, "H" FORM IN THE DEEMED ASSESSMENT STAGE THEN IS THEY LIABLE TO PAY INTEREST FROM THE DATE OF SALE OR FROM THE DATE OF ASSESSMENT OR FROM THE DATE FIXED BY THE SALES TAX AUTHORITY AFTER RAISING A DEEMAND NOTICE ? MY CLIENT SALE THE THE MATERIALS IN THE YEAR 2010-11 WITH THE CONCESSIONAL RATE OF TAX AGAINST FORM "C" UNDER THE CST ACT, 1956. NOW THE AUTHORITY DONE THE DEEMED ASSESSMENT ON 31/05/2013 AND DEMAND TAX ON WHICH "C" FORM NOT PRODUCE WITH INTEREST FROM THE DATE OF SALE. IS IT RIGHT OR WRONG? PLEASE HELP WITH THE CASE LAW OR ANY REPORTED CASE.
THANKS
VASANTH D JAGANATH
(Expert) 06 June 2013
some of the courts are of the opinoin that the interest should be charged from the date of assessmnet or demend notice issued, vat being self assessment the moment return filed and due date fixed for filing forms makes clear that no need for issued of demend notice, however hon'ble apex court in the case of Birla Cement Works Vs State of Rajasthan reproted in [1994] 94 STC 422 held that INTEREST — INTEREST ON UNPAID TAX — RETURN — PAYMENT OF TAX ALONG WITH RETURN — "FULL AMOUNT OF TAX DUE ON THE BASIS OF RETURN" — LIMITED TO TAX DUE ON BASIS OF PARTICULARS OF TURNOVER DISCLOSED IN RETURN — DOES NOT INCLUDE TAX DETERMINED ON FINAL ASSESSMENT — INTEREST ON DIFFERENTIAL TAX ON FINAL ASSESSMENT NOT DUE FROM DATE OF RETURN — RAJASTHAN SALES TAX ACT (29 OF 1954), SECS. 7(2), (2A), 11B (PRIOR TO AMENDMENT WITH EFFECT FROM APRIL 7, 1979) — RAJASTHAN SALES TAX RULES, 1955, RULE 25. INTERPRETATION OF STATUTES — TAXING STATUTES — CHARGING PROVISIONS AND MACHINERY PROVISIONS — PROVISION FOR INTEREST TO BE CONSTRUED AS SUBSTANTIVE LAW AND NOT MACHINERY PROVISION — PENALTY PROVISION — STRICT CONSTRUCTION.
