Penalty Must Be Levied If Assessee Failed to Deposit Tax Collected Within a Period of 30 Days From Due Date | HC

Case Details: Global Plasto Wares v. Assistant State Tax Officer - [2023] 156 taxmann.com 7 (Kerala)

Judiciary and Counsel Details

• • Dinesh Kumar Singh, J.
  • P. N. Damodaran Namboodiri & Hrithwik D. Namboothiri, Advs. for the Petitioner.
  • Jasmine M. M., Adv. for the Respondent.

Facts of the Case

In the present case, the petitioner received a demand notice issued under Section 73. It was contended that it had paid all tax demand before thirty days from the date of the notice and no penalty shall be payable and all proceedings in respect of the said notice would be deemed to be concluded but the Assessing Authority insisted to pay penalty as well. Therefore, it filed writ petition against it.

High Court Held

The Honorable High Court noted that the petitioner collected the tax and did not paid it to the Government within thirty days from the date from it was collected. As per Section 73(11), penalty must be paid if any amount of self-assessed tax or any amount collected as tax has not been paid within a period of thirty days from the due date of payment of such tax.

Therefore, the Court held that if a person chargeable to tax failed to deposit the tax collected by him within a period of thirty days from the due date of the payment of such tax, then Section 73(8) would not have any effect and such a person would be liable to pay penalty. Thus, the writ petition was dismissed by the Court.