By C. B. Thakar Advocate G. G. Goyal Jana K Vaghani Chartered Accountants
fiogf49gjkf0d
Sales Tax – Interest-Tax Paid As per Order Of High Court- In a Writ Petition Filed- Against Recovery Proceedings- Demand For Interest – Not Permissible, section 24(3) of The Tamil Nadu Sales Tax Act, 1959.
Facts
The father of the petitioner had filed writ petition before the Madras High Court against the recovery action taken by the Department for recovery of assessed dues. The High Court directed him to pay the dues in six equal installments, which he paid without any default. Thereafter, the Department issued demand notice claiming interest as per section 24(3) of the act for the belated payment of due amount. The petitioner filed writ petition before the Madras High Court against such demand notice for payment of interest.
Held
Indeed, ordinarily, there is no discretion vested with the authority under the act to desist from levying interest or reducing the same. Also, no notice or providing reasonable opportunity to the assessee is no essential. In law, there is no estoppel against a statute. But in the present case, the High Court in the earlier writ had permitted the petitioner to pay due amount in installments. At that time, on both sides, no plea was raised for payment of interest for the delayed payment by the assessee and admittedly no writ appeal is filed against the said order of High Court. Hence, the order of High Court became final and binding between the parties. When the High Court had permitted to pay due amount by way of installments by exercising its judicial discretion, then the invocation of section 24(3) of the Act for payment of interest, for payment made as per order of the High Court, is neither justifiable, nor valid and not prudent one. The High Court accordingly allowed the writ petition and set aside the demand raised by the department for payment of interest to promote the substantial cause of justice.
