- (1.) M. C. AGARWAL, J. These two revision petitions under section 11 of the U. P. Sales Tax Act, 1948 are directed against a common order dated January 28, 1988, passed by the Sales Tax Tribunal, Varanasi, in the dealer's second appeal Nos. 314 and 315 of 1986 whereby it dismissed the dealer's second appeals against the levy of interest under section 8 (1) of the Act.
(2.) I have heard the learned counsel for the assessee Sri Bharat Ji Agrawal and the learned Standing Counsel Sri R. D. Gupta. Under section 7 (1) of the Act, every dealer who is liable to pay tax under this Act shall submit such return or returns of his turnover at such intervals, within such period, in such form and verified in such manner, as may be prescribed. Under sub-section (1-A) of section 7, a dealer is required to deposit the tax on the turnover shown in such return before submitting the return of along with such return. Rule 41 prescribes the period and the manner in which the returns are to be filed. Sub-rule (1) of rule 41 provides that every dealer liable to tax the aggregate of whose turnover. . . . . in any assessment year exceeds rupees two lakhs, shall, before the expiry of the next succeeding month, submit to the Sales Tax Officer, a monthly return of his turnover in form IV. Thus, reading section 7 (1) and 7 (1-A) and rule 41 together, the liability of an assessee whose turnover exceeds rupees two lakhs, is to furnish a return for every month of the year and such return can be furnished before the expiry of the succeeding month. Since tax can be paid before the return is filed or along with the return, such tax on the turnover of a particular month can also be paid in the next succeeding month.
(3.) THE second proviso to rule 41, which would be the subject of discussion in this case reads as under : " Provided further that the dealer may, instead of submitting a return as aforesaid, estimate his turnover for the years on the basis of the turnover admitted by him in his return, or disclosed in his account books, whichever is greater, for the immediately preceding year, calculate the amount of tax payable thereon and deposit a sum equal to one-twelfth thereof during each of the first two months of every quarter, and deposit the balance of tax due on the turnover admitted by him in his return for the relevant quarter, which shall be prepared and submitted in the manner laid down in this rule. " By virtue of the said proviso, instead of filing the return every month, a dealer can opt to file the return quarterly, but for this concession, he has to pay tax in the first two months of the quarter at the average of the tax on the turnover admitted by him in his return or as disclosed in his account books, whichever is greater, for the immediately preceding year and he has to deposit the tax during the month itself and cannot postpone it till the end of the succeeding month.;