The High Court allowed writ petitions challenging demands for interest under the Tamil Nadu Additional Sales Tax Act, 1970. Quashing orders dated 12.07.2006, the Court held no interest was payable as additional tax remained unpaid on assessment completion.
Impugned orders dated 12.07.2006 quashed; writ petitions allowed with no costs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 04.02.2019
CORAM
THE HONOURABLE MR. JUSTICE M.S. RAMESH
W.P.Nos. 24952 and 24953 of 2006 and
M.P.Nos.1, 1, 2 and 2 of 2006 and 1, 1 of 2008
Santhosh Maize & Industries Limited, Rep. by its Manager, R.Harinarayan Garg, Santhosh Complex, 21, Ayyasamy Chetty Road, Shevapet, Salem - 636 002. ..Petitioner in both the petitions
-Vs-
Prayer in W.P.No.24952 of 2006: Writ Petition, filed under Article 226 of the Constitution of India, for issuance of Writ of Certiorari to call for the records on the files of the third respondent herein in R.P.No.J1/69/06, dated 12.07.2006 confirming the orders of the second respondent herein in R.P.No.12/06, dated 17.04.2006 and that of the first respondent herein in Assmt.No.2620619/03-04, dated 14.09.2005 and quash the same insofar as purporting to levy and recover interest under the provisions of the Tamil Nadu Additional Sales Tax Act, 1970.
Prayer in W.P.No.24953 of 2006: Writ Petition, filed under Article 226 of the Constitution of India, for issuance of Writ of Certiorari to call for the records on the files of the third respondent herein in R.P.No.J1/70/06, dated 12.07.2006 confirming the orders of the second respondent herein in R.P.No.53/05, dated 17.04.2006 and that of the first respondent herein in Assmt.No.2620619/02-03, dated 05.09.2005 and quash the same insofar as purporting to levy and recover interest under the provisions of the Tamil Nadu Additional Sales Tax Act, 1970.
Challenge under the present Writ Petitions is to the demand of interest under Section 2(1)(aaa) of the Tamil Nadu Additional Sales Tax Act, 1970 (Tamil Nadu Act 14 of 1970), for the assessment years 2002-03 and 2003-04.
decision reads as follows:
"2.The petitioner has filed these writ petitions challenging the demand of interest under Section 24 (3) of the Tamil Nadu General Sales Tax Act, 1959 (in short "TNGST Act") for the assessment years 2002-03 & 200304. The question is whether such demand can be made when there was no additional sales tax due and payable by the petitioner as on the date when the assessment was completed on 30.11.2005.
Sd/-
Assistant Registrar(CCC) //True copy//
Sub Assistant Registrar
pvs
To
+1cc to Special Government Pleader(Taxes), High Court, Madras SR.No.9867
W.P.Nos. 24952 and
24953 of 2006
MR(CO)
GMY(18/03/2019)
2 issues framed by the court
Whether interest under Section 2(1)(aaa) of the Tamil Nadu Additional Sales Tax Act, 1970 is payable when no additional tax remained unpaid on the date of assessment.
Whether the quashing of impugned orders regarding interest demand is justified based on the Kone Elevator judgment.
Colour shows how this judgement treated each authority
Kone Elevator India Pvt. Ltd. vs. Commercial Tax OfficerFollowed¶18
[2010] 27 VST 577 (Mad)
1 provisions across 1 enactments
Santhosh Maize & Industries Limited
Commercial Tax Officer
Deputy Commissioner of Commercial Tax
Joint Commissioner of Rating and Prefermentation
Karur Vysya Bank Ltd.
M.S. RAMESH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
