Madras High Court
The Assistant Commissioner (Ct) ... vs Senthil Oxygen (P) Limited on 11 October, 2023
W.A.(MD) No.1667 of 2023
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 11.10.2023
CORAM:
THE HONOURABLE MR.JUSTICE S.M.SUBRAMANIAM
and
THE HONOURABLE MR.JUSTICE V.LAKSHMINARAYANAN
W.A.(MD) No.1667 of 2023
and
C.M.P.(MD) No.12849 of 2023
The Assistant Commissioner (CT) II
Thanjavur Assessment Circle
Sachidanantha Moopanar Road
Commercial Tax Building
Thanjavur ... Appellant
-vs-
Senthil Oxygen (P) Limited
rep.by its Managing Director
J.Senthil Kumar
S.F.No.39/6, 39/7, Plot Nos.6 & 7
Vallam to Orathanadu Road
Thirukkanurpatti Post
Thanjavur District ... Respondent
Writ Appeal filed under Clause 15 of Letters Patent to set aside the
order, dated 18.11.2019, passed in W.P.(MD) No.12228 of 2018, on the file of
this Court.
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Page 1 of 6
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W.A.(MD) No.1667 of 2023
For Appellant : Mr.N.Satheesh Kumar
Additional Government Pleader
For Respondent : Mr.S.Venkatesh
JUDGMENT
[Judgment of the Court was made by V.LAKSHMINARAYANAN, J.]
This writ appeal is directed against the order of the learned Single
Judge, dated 18.11.2019, passed in W.P.(MD) No.12228 of 2018.
2. The short issue for consideration in this writ appeal is whether
the Government is entitled to interest on delayed payment, for the erroneous
demand made by it.
3. The respondent / writ petitioner was called upon to pay a sum
of Rs.36,61,153/- towards tax and penalty and interest up till 18.02.2014. In
default, he was warned that his property would be brought for auction.
Challenging the same, he filed a writ petition in W.P.(MD) No.3813 of 2014
and as per the orders of this Court, he paid Rs.10,00,000/-. The respondent
had offered to pay the said amount immediately and recording the same, he
was directed to pay the same. Accordingly, he paid a sum of Rs.27,00,000/-.
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W.A.(MD) No.1667 of 2023
In addition to the amount paid at the time of admission, the total amount
came to Rs.37,00,000/-. The writ petition stood allowed with a direction to
levy simple interest. Subsequently, on 23.01.2015, another notice was issued
calling upon the respondent to pay Rs.40,84,005/-. This was challenged by
the respondent by way of other writ petition in W.P.(MD) No.2462 of 2015.
The said writ petition was allowed with a direction to the appellant to
reconsider the whole issue.
4. According to the learned Additional Government Pleader, the
calculation that was given originally was wrong and therefore, the payment
that had been made had been adjusted towards interest first, which left out
the arrears and therefore, a fresh demand had been made on the respondent.
This was challenged before this Court under the impugned order.
5. The learned Single Judge found that where there is no provision
enabling the Government to adjust the amounts towards interest first and
thereafter, towards the principal or tax arrears. The Court held the amounts
paid should have been treated only as payment towards the principal amount
or tax arrears.
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W.A.(MD) No.1667 of 2023
6. On the last occasion, when the matter was listed, we called
upon the learned Additional Government Pleader to produce any statutory
provision enabling the Government to adjust the amount towards interest first
and principal or tax arrears later. The learned Additional Government Pleader
was unable to produce the same as the Tamil Nadu General Sales Tax Act,
1959 does not have such a provision.
7. He would submit that there was an error in calculation and
therefore, the Government levied interest on the respondent. It is on record
that whatever amount that had been demanded by the appellant had been
paid by the respondent immediately. This included the interest as well as the
penalty, which the respondent was liable to pay till that date. Error of
calculation will not enure in favour of the Government. We feel that it should
have gone in favour of the benefit of the respondent. The only issue being
whether the amounts paid should be calculated against the interest first and
principal or tax arrears later having been answered against the appellant, no
further issue remains for adjudication in this writ appeal.
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W.A.(MD) No.1667 of 2023
8. Accordingly, the writ appeal stands dismissed. No costs.
Consequently, connected miscellaneous petition is closed.
[S.M.S., J.] [V.L.N., J.]
11.10.2023
NCC : Yes / No
Index : Yes / No
Internet : Yes / No
krk
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https://www.mhc.tn.gov.in/judis
W.A.(MD) No.1667 of 2023
S.M.SUBRAMANIAM, J.
and
V.LAKSHMINARAYANAN, J.
krk
W.A.(MD) No.1667 of 2023
and
C.M.P.(MD) No.12849 of 2023
11.10.2023
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https://www.mhc.tn.gov.in/judis
