The petitioner challenged a remand order requiring imposition of penalty for belated Entry Tax payment. The Court noted the Act allows penalty but not interest. Upholding the order as legally sound, the writ petition was dismissed.
The writ petition seeking quashing of the remand order is dismissed; no costs awarded.
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.
W.P.(MD)No.336 of 2020
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 28.07.2020 CORAM:
THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN W.P.(MD)No.336 of 2020 and W.M.P.(MD)No.255 of 2020
Tvl.Solaimalai Automobiles (P)Ltd, Rep. by its Director K.Karthikeyan.
... Petitioner
Vs
1.The Commercial Tax Officer, Melur Assessment Circle, Commercial Tax Building, Madurai.
2.The Joint Commissioner (ST)
Madurai Division,
Commercial Tax Building, Madurai.
3.The Additional Commissioner (Policy and Planning) Office of the Additional Chief Secretary / Commissioner of Commercial Tax, Chennai - 600 005. ... Respondents
PRAYER: Petition filed under Article 226 of the Constitution of India to issue a Writ of Certiorari, calling for the records in No.J1/RP/112/2015, dated 05.12.2019 on the file of the third respondent, confirming the order of respondents 1 and 2 and quash the same as illegal against law.
For Petitioner : Mr.S.Karunakar For Respondents : Mrs.J.Padmavathi Devi, Special Government Pleader.
ORDER
Heard the learned counsel for the petitioner and the learned Special Government Pleader for the respondents.
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W.P.(MD)No.336 of 2020
“15. Thus, though the aforesaid provisions enable the authorities to levy tax and penalty, there is no entitlement therein to levy interest on the belated payment of tax and penalty, which is essentially in the nature of penal interest. Reference to the provision of the Tamil Nadu General Sales Tax Act, 1956, is misconceived as the Entry Tax Act, as stated earlier, is a compact statute that does not draw upon any other law, including the General Sales Tax Law, in the matter of assessments thereunder”
“ 15-Penalty: 15(1) .....
15(2). If the person does not, without reasonable cause, pay the tax within the time he is required, by or under the provisions of this Act to pay the assessing authority may, after giving such person a reasonable opportunity of being heard, by order in writing,impose upon him by way of penalty, in addition to the amount of tax and penalty under sub-section (1) a sum equal to.—
(a) one and one half per cent, of the amount of tax for each month for the first three months, after the last date by which the person should have paid that tax, and
(b) two per cent, of the amount of tax for each month thereafter during the time the person continues to make default in the payment of tax”
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W.P.(MD)No.336 of 2020
// True Copy //
msa/pmu
Note : In view of the present lock down owing to COVID-19 pandemic, a web copy of the order may be utilized for official purposes, but, ensuring that the copy of the order that is presented is the correct copy, shall be the responsibility of the advocate/litigant concerned.
To
1.Commercial Tax Officer, Melur Assessment Circle, Commercial Tax Building, Madurai.
2.The Joint Commissioner (ST) Madurai Division, Commercial Tax Building, Madurai.
3.The Additional Commissioner (Policy and Planning) Office of the Additional Chief Secretary / Commissioner of Commercial Tax,
Chennai - 600 005.
+1 CC to M/s.S. KARUNAKAR, Advocate ( SR-13316[F] dated 29/07/2020 )
W.P.(MD)No.336 of 2020 and W.M.P.(MD)No.255 of 2020 28.07.2020
AP(25/08/2020) 3P 5C
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2 issues framed by the court
Whether a writ of certiorari should issue to quash an order remanding a matter to the Assessing Officer to levy penalty for belated payment of Entry Tax.
Whether the revisional authority erred in mandating the levy of penalty under Section 15(2) when the law does not permit levying interest on belated tax payment.
1 provisions across 1 enactments
Tvl.Solaimalai Automobiles (P)Ltd
The Commercial Tax Officer, Melur Assessment Circle
The Joint Commissioner (ST) Madurai Division
The Additional Commissioner (Policy and Planning)
G.R.Swaminathan
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
