M/S BADRILAL VITTHALDAS Vs. COMMISSIONER, COMMERCIAL TAX

JUDGEMENT

(1.) HEARD . This petition has been filed by the petitioner against the order dt.22.7.2008 (Annexure P/1). The question for consideration before the court is that whether the petitioner was liable to pay interest on delayed payment of tax.

(2.) THE petitioner was subjected to payment of tax on 'Dalda' as entry tax. The tax was imposed vide notification dt.1.10.1997. The petitioner was required to pay a tax of Rs.1,11,956/ - in regard to liability of payment of entry tax for the period between 15.10.1999 and 16.8.2001. He deposited amount of Rs.50,000/ - on 15.10.1999 and remaining amount on 16.8.2001. The authority held that the petitioner was liable to pay interest on the amount, which was deposited by him belatedly because he did not deposit the amount within time. The authority imposed an interest of Rs.53,816/ - and penalty of Rs.25,505/ -. The revisional authority set aside the penalty, however, maintained the interest imposed against the petitioner.

(3.) SUB section 4(a) of Section 26 of the Act of 1994 prescribes payment of interest by a dealer under certain circumstances. The Section is as under : -