Section 9(2B) of Central Sales Tax Act 1956 provides for interest on delayed payment of CST as per the general sales tax law of the State concerned. This provision was added we.f 12-05-2000 by section 120 of the Finance act 2000, Prior to it there was no such provision for levy of interest under CST Act.
The Punjab & Haryana High Court has held in State of Haryana v Giriraj Metal and Ferro Alloys (2011) 39 PHT 101 (P&H) that the said provision u/s 9(2B) will be applicable with retrospective effect i.e w.e.f 05-01-1957(from the date of CST Act) following the decision of Supreme Court in case of Indodan
Industries Limited v. State of UP and others, 2010(27) Vat and Service Tax Cases 1
Brief Facts of the case: After assessment in the case of the respondent-dealer was finalized, the revisional authority in exercise of suo motu powers passed order dated 26.3.2001 imposing interest for late payment of tax for the assessment years 1996-97 and 1997-98 under section 25(5) read with section 9(2B) of the Central Sales Tax Act, 1956 (the Central Act). The demand of interest was set aside by the Tribunal on 1.3.2002. It was held that since amendment had been made to the Central Actonly w.e.f 12.5.2000, the interest could not be demanded for period prior thereto.
The court following the decision of Supreme Court in Indodan Industries Limited v. State of UP and others, 2010(27) Vat and Service Tax Cases 1 held that the section 9(2B) of CST Act will be appliacable retrospectively.
Thus it means that interest in respect of delayed payment of CST in respect of a period earlier to the Finance Act of 2000, will also be payable.
The full Judgement can be downloaded herebelow:
State of Haryana v Giriraj Metal and Ferro Alloys
Share |
The Punjab & Haryana High Court has held in State of Haryana v Giriraj Metal and Ferro Alloys (2011) 39 PHT 101 (P&H) that the said provision u/s 9(2B) will be applicable with retrospective effect i.e w.e.f 05-01-1957(from the date of CST Act) following the decision of Supreme Court in case of Indodan
Industries Limited v. State of UP and others, 2010(27) Vat and Service Tax Cases 1
Brief Facts of the case: After assessment in the case of the respondent-dealer was finalized, the revisional authority in exercise of suo motu powers passed order dated 26.3.2001 imposing interest for late payment of tax for the assessment years 1996-97 and 1997-98 under section 25(5) read with section 9(2B) of the Central Sales Tax Act, 1956 (the Central Act). The demand of interest was set aside by the Tribunal on 1.3.2002. It was held that since amendment had been made to the Central Actonly w.e.f 12.5.2000, the interest could not be demanded for period prior thereto.
The court following the decision of Supreme Court in Indodan Industries Limited v. State of UP and others, 2010(27) Vat and Service Tax Cases 1 held that the section 9(2B) of CST Act will be appliacable retrospectively.
Thus it means that interest in respect of delayed payment of CST in respect of a period earlier to the Finance Act of 2000, will also be payable.
The full Judgement can be downloaded herebelow:
State of Haryana v Giriraj Metal and Ferro Alloys
Share |
Posts
0 comments :
Post a Comment