- (1.) R. K. GULATI, J. These are two connected sales tax revisions which are directed against a common order dated March 28, 1989 passed by the Sales Tax Tribunal, Division Bench, Agra.
(2.) THE dispute arises out of rectification proceedings under section 22 of the U. P. Sales Tax Act, 1948, now known as the U. P. Trade Tax Act (for short, "the Act") and pertains to the assessment year 1977-78. S. T. R. No. 573 of 1989 arises out of the assessment proceedings under the U. P. Sales Tax Act while the other Revision No. 574 of 1989 arises from the assessment proceedings under the Central Sales Tax Act. It is not in dispute that the assessments both in respect of the U. P. and Central Sales Tax Acts for the year in question were made by a common order dated August 28, 1980 on best judgment. THE turnover under the U. P. Sales Tax Act was assessed at Rs. 10,000 against the admitted turnover of Rs. 9,191. 04 and at Rs. 5,25,000 under the Central Sales Tax Act against the turnover of Rs. 4,75,566. 26 as per account books of the assessee. After the completion of assessments aforesaid, the assessing authority initiated proceedings under section 22 of the Act and served notices in September, 1981, upon the assessee, stating, inter alia, that in the assessment order dated August 28, 1980 by an inadvertence the interest was left out to be charged on the admitted amount of tax which the assessee was liable to pay on the turnovers which were reflected from the books of account, inasmuch as, the assessee had not filed any return for the year in dispute both under the U. P. and Central Sales Tax Acts and had also not deposited the admitted tax within the prescribed time. The notices under section 22 of the Act were contested by the assessee by filing written objections. However, the assessing authority overruled the objections and by two separate orders carried out the rectification, requiring the assessee to pay interest at the rate of 2 per cent per mensem with effect from April 1, 1976 on the amount of tax due under law and was required to be paid by the assessee on the turnovers as per its account books exigible to tax under the two Acts aforesaid. The orders of rectification were upheld in the first instance by the Assistant Commissioner (Judicial), Sales Tax and thereafter, in second appeals by the Sales Tax Tribunal, which were filed by the assessee. Learned counsel for the assessee contended that under section 22 of the Act where the interest had not been charged in the original assessment order, the same cannot be levied by way of rectification of the assessment order.
(3.) I have considered the submission carefully but in my opinion, there is no substance in it. There is no dispute that no returns were filed at all nor the admitted tax was paid under the two Acts aforesaid. The assessee was brought on record as a result of the survey which was conducted on the business premises of the assessee on August 27, 1980. From the account books produced during the survey it transpired that the assessee had a taxable turnover of Rs. 9,191. 47 under the U. P. Sales Tax Act and a turnover of Rs. 4,75,565. 26 under the Central Sales Tax Act. It was on account of that survey that the assessment order dated August 28, 1980 was passed of which reference has been made earlier. Now sub-section (1) of section 8 of the Act, inter alia, provides that the tax admittedly payable shall be deposited within the time prescribed, failing which simple interest at the rate of two per cent per mensem shall become due and be payable on the unpaid amount with effect from the day immediately following the last date prescribed till the date of payment of such amount and nothing contained in section 7 shall prevent or have the effect of postponing the liability to such interest. The Explanation attached to that sub-section envisages that for the purposes of that sub-section the tax admittedly payable means the tax which is payable under the Act on turnover of sales or, as the case may be, the turnover of purchases, or of both, as disclosed in the accounts maintained by the dealer or admitted by him in any return or processing under the Act, whichever is greater, or if no accounts were maintained then according to the estimate of the dealer.;