Cst liabilty and penalty

This query is : Resolved

Prerna V. Dharurkar (Querist)
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26 February 2013 Sir/ Madam,

One of our client has not received C form for the F.Y.2008-09 and has received VAT Assessment Notice for the same period. The STO has told us to pay interest on the differential liability till date and 100% penalty u/s.29(c).But we are not getting any information related to the above section.

Kindly reply to the query as soon as possible.

CA. Hari Kishan

CA. Hari Kishan (Expert)
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26 February 2013 With regard to levy of interest , you may refer to

Maruti wire industies

J K Synthetics case

Associated cement company

BHEL case - Karnataka tribunal

Jalpac India - Uttarkhand HC

The courts have held that interest shall arise only from the date of demand and demand shall arise on completion of assessment and passing of order.