HC
dismisses assessee’s writ, upholds recovery of interest on belated payment
of installments under sales tax deferment scheme u/s 25 of AP VAT
Act, 2005 (Act) dealing with recovery of tax as an arrear of land
revenue; Remarks that, “after indicating four different types of amounts, viz.,
(1) tax assessed; (2) penalty levied; (3) interest payable under the Act; and
(4) amount of tax under the deferment scheme, the last part of Section 25 uses
an omnibus expression, viz., the whole of the amount then remaining unpaid”,
thus, rejects assessee’s plea that Section 25 cannot be invoked for recovery of
interest due on installments; Explains that, tax deferment is granted by
Government generally in terms of Section 69 of Act but manner in which
eligibility period has to be fixed, method of debiting eligibility
amount and question of repayment, are all left to rule making authorities u/s
69(3); Perusing Rule 24(5)(b) of AP VAT Rules, HC elucidates that, “Once the
order granting the facility of deferred payment of tax becomes infructuous, the
amount that remains unpaid automatically gets restored to the status of a tax”,
consequently, Section 22(2) would come into play which indicates that liability
to pay interest is not just correlated to tax assessed or penalty levied, but
has a correlation even to 'any other amount due' which would
include “arrears or installments payable under a deferment scheme”;
Further finds no illegality in the order of attachment, states that, “To have an
attachment on the property which is already under mortgage to the Bank is
completely different from the priority that Section 26E of the Securitization
Act talks about” : Andhra Pradesh HC
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