TERUMO PENPOL LIMITED Vs. STATE OF KERALA

JUDGEMENT

(1.) The question raised is whether the Commissioner of Commercial Taxes was justified in holding that the Appellant is liable to pay interest on belated payment of Central sales tax for the assessment year 2000-01. We have heard counsel appearing for the Appellant and the Government Pleader for the Respondent.

(2.) The facts are admitted inasmuch as the Appellant though made inter-State sale declaring turnover at concessional rate on condition of production of C forms, C forms were never produced leading to assessment at full rate in terms of Section 8(2)(b) of the Central Sales Tax Act, 1956. The Appellant has no dispute with regard to higher amount of tax assessed over the tax returned and paid by the Appellant. However, the dispute is limited to the interest demanded for belated payment of balance demand of Central sales tax. The assessing officer was of the view that interest is payable under Section 9(2B) of the CST Act and accordingly interest was levied on the remaining unpaid tax for the period during which tax remained unpaid. In the first revision the Deputy Commissioner following certain decisions of this Court allowed the revision. However, the Commissioner noticed that later decisions of this Court justified levy of interest for belated payment of tax. Accordingly, the first revisional order was vacated by the Commissioner in exercise of suo motu revisional power and interest levied was restored. This appeal is filed against the order of the Commissioner restoring levy of interest.

(3.) The Appellant's contention is that since CST Rules provide for filing of C forms later, the Division Bench decision of this Court relied on by the Commissioner does not apply at all. Section 9(2B) of the CST Act under which interest is demanded is as follows: