IMPORTANT POINT
Interest on tax is payable from the date of the first assessment order if not paid within the specified time.

ORDER :

(Rekha Borana, J.)

1. The issue in the present revision petition is: if an assessment order is once set aside and after remand, a fresh assessment order is passed, interest on the tax payable would be leviable from which date – the date from which the tax became due to be payable in terms of provisions of the Act; or from the date of the first assessment order; or from the date of fresh assessment order (after remand) was passed?

2. The facts of the case are that assessment order dated 29.10.1992 was passed by the Assessing Authority in terms of Section 10(1)(b) of the Rajasthan Sales Tax Act, 1954 (for short hereinafter referred to as, ‘the Act of 1954’). Aggrieved of the said assessment order, an appeal was preferred by the assessee before the Deputy Commissioner (Appeals), Commercial Taxes. The appeal of the assessee was allowed vide order dated 08.12.1998. The assessment order was set aside and the matter was remanded back to the Assessing Authority for passing of a fresh assessment order after affording an opportunity of hearing to the assessee. After remand, notices were issued by the Assessing Authority to the assessee calling upon it to submit the books of accounts. No response to the said notice was filed by the assessee and hence, vide order dated 05.12.2000, fresh assessment order in terms of Section 29(8)(b) of the Act of 1994 was passed (as by that time, the Act of 1954 stood repealed and that of 1994 had come into effect). Vide the said order, a liability of tax amounting to Rs.14,75,130/- was assessed by the Assessing Authority. Further, in terms of Section 58 of the Act of 1994, the interest on the said amount was quantified as Rs.32,15,785/-. Penalty of Rs.500/- and Rs.5320/- were also imposed. Summing up, a demand of Rs.46,96,735/- was raised against the respondent assessee vide the order dated 05.12.2000.

3. The order dated 05.12.2000 was assailed vide an appeal and the Appellate Authority, vide order dated 21.08.2003, while affirming the order of liability of tax for an amount of Rs.14,75,130/-, set aside the remaining order imposing penalty in terms of Section 58 of the Act of 1994.

4. A second appeal against the order dated 21.08.2003 was preferred before the Rajasthan Tax Board, Ajmer in terms of Section 85 of the Act of 1994. Learned Tax Board although declined to interfere with the order of assessment of liability of tax, while affirming the order of liability of interest, held that the same could have been levied only w.e.f. 05.12.2000, that is, the date on which fresh assessment order was passed by the Assessing Authority after the matter having been remanded.

The impugned order dated 09.08.2004 as passed by the learned Tax Board has been challenged by the petitioner-Department in the present revision petition to the extent the order of assessment qua interest has been modified by the learned Tax Board.

5. Learned counsel for the petitioner submitted that learned Tax Board erred in holding that the interest on the tax payable would be leviable w.e.f. 05.12.2000. In terms of Section 58 of the Act of 1994, the interest becomes leviable if the tax which is payable, is not paid within the time prescribed. As per Section 25(1) of the Act of 1994, the tax payable is to be deposited within the time prescribed. As per Section 26(1) of the Act of 1994, every registered dealer is required to furnish prescribed return in prescribed manner and within the prescribed time to the Assessing Authority. After the said return having been filed, the Assessing Officer shall make an assessment on basis of the said return. If any dealer does not file returns in terms of Section 26(1), the Assessing Authority shall assess the dealer and determine the tax payable by him.

6. Counsel submitted that in the present matter, admittedly, the respondent-Firm did not file the return in accordance with Section 26(1) of the Act of 1994 and hence, the Assessing Authority passed the assessment order dated 29.10.1992. The demand for payme