J.K. Synthetics Ltd. v. CTO

4 SCC 276Reported decision1994#6376 most cited

What is J.K. Synthetics Ltd. v. CTO authority for?

Levying interest for delayed payment of tax requires a substantive statutory provision. Such a levy cannot be imposed retrospectively.

18

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2007 to 2022.

Also referred to as

J.K. Synthetics Ltd. v. CTO · interest levy · substantive provision · retrospective operation · delayed payment of tax · statutory provision

Issues it is cited on

section 153a(1)(a)section 153c(1)section 132(1)section 153a(1)section 158section 149documents seizedsatisfaction notesection 151section 153csection 271(1)(c)section 139

Judgments citing J.K. Synthetics Ltd. v. CTO

NALIN VYAS (THROUGH LEGAL HEIR BRIJESH VYAS),VIRAR vs. ITO 4 (3), THANE

In the result, all the appeals of the assessee are allowed

ITA 6397/MUM/2019[2012-13]Status: DisposedITAT Mumbai04 Aug 2022AY 2012-13
For Appellant: Shri Himanshu GandhiFor Respondent: Dr. Mahesh Akhade (DR) &
Section 132Section 153CSection 271(1)(c)

…on and inserted in the statute book for the purpose of carrying out assessments of a person other than the searched person under sections 132 or 132A of the Act. The court has referred to its earlier decision in the case of J.K. Synthetics Ltd. v. CTO, (1994) 4 SCC 276, wherein it has been held thus: “16. It is well known that when a statute levies a tax it does so by inserting a charging section by which a liability is created or fixed and then proceeds to provide the machinery to make the liability effective. It, therefore, provides the machinery for the assessment of the liability already fixed by the charging…

NALIN VYAS (THROUGH LEGAL HEIR BRIJESH VYAS),VIRAR vs. ITO 4 (3), THANE

In the result, all the appeals of the assessee are allowed

ITA 6396/MUM/2019[2012-13]Status: DisposedITAT Mumbai04 Aug 2022AY 2012-13
For Appellant: Shri Himanshu GandhiFor Respondent: Dr. Mahesh Akhade (DR) &
Section 132Section 153CSection 271(1)(c)

…on and inserted in the statute book for the purpose of carrying out assessments of a person other than the searched person under sections 132 or 132A of the Act. The court has referred to its earlier decision in the case of J.K. Synthetics Ltd. v. CTO, (1994) 4 SCC 276, wherein it has been held thus: “16. It is well known that when a statute levies a tax it does so by inserting a charging section by which a liability is created or fixed and then proceeds to provide the machinery to make the liability effective. It, therefore, provides the machinery for the assessment of the liability already fixed by the charging…

NALIN VYAS (THROUGH LEGAL HEIR BRIJESH VYAS),VIRAR vs. ITO 4 (3), THANE

In the result, all the appeals of the assessee are allowed

ITA 6395/MUM/2019[2011-12]Status: DisposedITAT Mumbai04 Aug 2022AY 2011-12
For Appellant: Shri Himanshu GandhiFor Respondent: Dr. Mahesh Akhade (DR) &
Section 132Section 153CSection 271(1)(c)

…on and inserted in the statute book for the purpose of carrying out assessments of a person other than the searched person under sections 132 or 132A of the Act. The court has referred to its earlier decision in the case of J.K. Synthetics Ltd. v. CTO, (1994) 4 SCC 276, wherein it has been held thus: “16. It is well known that when a statute levies a tax it does so by inserting a charging section by which a liability is created or fixed and then proceeds to provide the machinery to make the liability effective. It, therefore, provides the machinery for the assessment of the liability already fixed by the charging…

NALIN VYAS (THROUGH LEGAL HEIR BRIJESH VYAS),VIRAR vs. ITO 4 (3), THANE

In the result, all the appeals of the assessee are allowed

ITA 6394/MUM/2019[2011-12]Status: DisposedITAT Mumbai04 Aug 2022AY 2011-12
For Appellant: Shri Himanshu GandhiFor Respondent: Dr. Mahesh Akhade (DR) &
Section 132Section 153CSection 271(1)(c)

…on and inserted in the statute book for the purpose of carrying out assessments of a person other than the searched person under sections 132 or 132A of the Act. The court has referred to its earlier decision in the case of J.K. Synthetics Ltd. v. CTO, (1994) 4 SCC 276, wherein it has been held thus: “16. It is well known that when a statute levies a tax it does so by inserting a charging section by which a liability is created or fixed and then proceeds to provide the machinery to make the liability effective. It, therefore, provides the machinery for the assessment of the liability already fixed by the charging…

NALIN VYAS (THROUGH LEGAL HEIR BRIJESH VYAS),VIRAR vs. ITO 4 (3), THANE

In the result, all the appeals of the assessee are allowed

ITA 6393/MUM/2019[2010-11]Status: DisposedITAT Mumbai04 Aug 2022AY 2010-11
For Appellant: Shri Himanshu GandhiFor Respondent: Dr. Mahesh Akhade (DR) &
Section 132Section 153CSection 271(1)(c)

…on and inserted in the statute book for the purpose of carrying out assessments of a person other than the searched person under sections 132 or 132A of the Act. The court has referred to its earlier decision in the case of J.K. Synthetics Ltd. v. CTO, (1994) 4 SCC 276, wherein it has been held thus: “16. It is well known that when a statute levies a tax it does so by inserting a charging section by which a liability is created or fixed and then proceeds to provide the machinery to make the liability effective. It, therefore, provides the machinery for the assessment of the liability already fixed by the charging…

NALIN VYAS (THROUGH LEGAL HEIR BRIJESH VYAS),VIRAR vs. ITO 4 (3), THANE

In the result, all the appeals of the assessee are allowed

ITA 6392/MUM/2019[2010-11]Status: DisposedITAT Mumbai04 Aug 2022AY 2010-11
For Appellant: Shri Himanshu GandhiFor Respondent: Dr. Mahesh Akhade (DR) &
Section 132Section 153CSection 271(1)(c)

…on and inserted in the statute book for the purpose of carrying out assessments of a person other than the searched person under sections 132 or 132A of the Act. The court has referred to its earlier decision in the case of J.K. Synthetics Ltd. v. CTO, (1994) 4 SCC 276, wherein it has been held thus: “16. It is well known that when a statute levies a tax it does so by inserting a charging section by which a liability is created or fixed and then proceeds to provide the machinery to make the liability effective. It, therefore, provides the machinery for the assessment of the liability already fixed by the charging…

SHREE CHOUDHARY TRANSPORT CO. vs. INCOME TAX OFFICER

C.A. No.-007865-007865 - 2009Supreme Court29 Jul 2020

Bench: HON'BLE MR. JUSTICE DINESH MAHESHWARI

Section 40

…re booked during the year but remain payable or outstanding and not the expenses that had already been paid. The learned counsel has referred to the decision of this Court in the case of J.K. Synthetics Limited v. Commercial Taxes Officer: (1994) 4 SCC 276; and the definition of the term “paid” in Section 43(2) of the Act to submit that the two expressions “payable” and “paid” are of entirely different connotations. The learned counsel has painstakingly referred to the contents of the Bill introducing the Finance (No.2) Act of 2004 where the expressions “credited or paid” were used but in t…

RIDDHI SIDDHI DEVELOPERS P. LTD.,MUMBAI vs. D.C.I.T. CENT. CIR. - 6(4), MUMBAI

ITA 646/MUM/2018[2013-14]Status: DisposedITAT Mumbai16 Jun 2020AY 2013-14

Bench: Shri Ravish Sood & Shri N.K. Pradhanita Nos.646-647/Mum/2018 (Assessment Years: 2013-14 & 2014-15) Riddhi Siddhi Developers P. Ltd Deputy Commissioner Of Income-Tax, 45, Maker Chambers-Iii, Central Circle – 6(4), Room No. 1925, Vs. 223 Nariman Point, 19Th Floor, Air India Building, Mumbai – 400 021 Nariman Point , Mumbai – 400 021 Pan – Aaacr0426N (Appellant) (Respondent)

For Appellant: Ms. Hema KatariaFor Respondent: Shri Manjunatha Swami, CIT D.R
Section 132(4)Section 143(3)Section 153C

…Riddhi Siddhi Developers Pvt. Ltd. Vs. DCIT Central Circle 6(4), Mumbai 1 ITA Nos. 646-647/Mum/2018 – A.Y 2013-14 & A.Y 2014-15 IN THE INCOME TAX APPELLATE TRIBUNAL “D” Bench, Mumbai Before Shri Ravish Sood, Judicial Member and Shri N.K. Pradhan, Accountant Member ITA Nos.646-647/Mum/2018 (Assessment Years: 2013-14 & 2014-15) Riddhi Siddhi Developers P. Ltd Deputy Commissioner of Income-tax, 45, Maker Chambers-III, Central Circle – 6(4), Room No. 1925, Vs. 223 Nariman Point, 19th Floor, Air India Building, Mumbai – 400 021 Nariman Point , Mumbai – 400 021 PAN – AAACR0426N (Appellant) (Respondent) Appella…

M/S. STEEL AUTHORITY OF INDIA LTD. (UNIT BHILAI STEEL PLANT) ISPAT BHAWAN . THROUGH ITS SR. MANAGER (F AND A) vs. COMMISSIONER OF CENTRAL EXCISE RAIPUR

C.A. No.-002150-002150 - 2012Supreme Court08 May 2019

Bench: Us. 2. Very Briefly Put, The Question Which We Are Called Upon To Consider & Resolve Is As To Whether Interest Is Payable On The Differential Excise Duty With Retrospective Effect That Become Payable On The Basis Of Escalation Clause Under Section 11Ab Of The Central Excise Act, 1944 (Hereinafter Referred To As “The Act”). 3. In This Batch Of Appeals, We Will Treat C.A. No.2150/2012 As The Leading Case. We Will Refer To The Said Case As The Sail Case. In The Said Case Originally, The Appellant Company Which Is Manufacturer Of Various Products Including Rail

Section 11Section 11A

…13(2) was to be paid without any notice of demand. The Court drew support from the decision in JK Synthetics Ltd. (supra). We may also notice the following discussion: “..In this respect the principles laid down in J.K. Synthetics Ltd. case [(1994) 4 SCC 276] fully apply even though the provisions of the Tamil Nadu General Sales Tax Act and the Rajasthan Act may not be identical. The principle to be kept in mind is, that, when the levy of interest emanates as a statutory consequence and such liability is a direct consequence of non-payment of tax, be it under Section 215 of the Income Tax Act…

GOVIND AGARWAL. HUF,MUMBAI vs. ACIT CEN CIR 32, MUMBAI

In the result, the appeals of the assessee’s are allowed in part, in terms indicated hereinabove, whereas the Revenue’s appeals are dismissed

ITA 826/MUM/2011[2004-05]Status: DisposedITAT Mumbai30 Jun 2016AY 2004-05

Bench: Shri R.C.Sharma, Am & Shri Sanjay Garg, Jm आयकर अपील सं./Ita No.4531,4566,876,877,878/Mum/2011 ("नधा"रण वष" / Assessment Years :2006-07, 2007-08, 2002-03, 2003-04 & 2005-06) Acit, Cc-32, Mumbai Vs. Manidevi Agarwal, 720, A- 1, Lok Bharti Chs Ltd., Marol Maroshi Road, Marol, Andheri(E), Mumbai- 400059 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aakpa 4962 H .. (अपीलाथ" /Appellant) (""यथ" / Respondent) & आयकर अपील सं./Ita No.4528/Mum/2011 ("नधा"रण वष" / Assessment Years : 2007-08) Acit, Cc-32, Mumbai Vs. Shri Govind Agarwal, 701, A-1, Lok Bharti Chs Ltd., Marol Maroshi Road, Marol, Andheri(E), Mumbai- 400059 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Adopa 4038 K .. (अपीलाथ" /Appellant) (""यथ" / Respondent) & आयकर अपील सं./Ita No.873,874/Mum/2011 ("नधा"रण वष" / Assessment Years : 2003-04 & 2004-05) Acit, Cc-32, Mumbai Vs. Shri Govind Agarwal(Huf), 720/A-5, Lok Bharti Chs Ltd., Marol Maroshi Road, Marol, Andheri(E), Mumbai- 400059 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aiepa 3109 A .. (अपीलाथ" /Appellant) (""यथ" / Respondent) 876,828,4566,4547,218/11 &957/13&Co203.13

Section 143(3)Section 14ASection 153A

…ue the statute in such a manner so as to make the machinery workable. ……………………………………………………………………… ……… 36. A reference to the observations of this Court in JK. Synthetics Limited and Birla Cement Works and another v. Commercial Taxes Officer and another (1994) 4 SCC 276 would be apposite: "13. It is well-known that when a statute levies a tax it does so by inserting a charging section by which a liability is created or fixed and then proceeds to provide the machinery to make the liability effective. It, therefore, provides the machinery for the assessment of the liability already fixed by the charging section, an…

M/S. STEEL AUTHORITY OF INDIA LTD. (UNIT BHILAI STEEL PLANT) ISPAT BHAWAN . THROUGH ITS SR. MANAGER (F AND A) vs. COMMISSIONER OF CENTRAL EXCISE RAIPUR

C.A. No.-002150-002150 - 2012Supreme Court07 Dec 2015
Section 11ASection 4

…283 and Central Provinces Manganese Ore Co. Ltd. v. CIT, (1986) 3 SCC 461, all that the Court pointed out was that provision for charging interest was, it seems, introduced in order to compensate for the loss occasioned to the 5 (1994) 4 SCC 276 6 (1981) 4 SCC 578 Civil Appeal No. 2150 of 2012 & Ors. Page 26 of 29 Page 27 JUDGMENT 27 Revenue due to delay. But then interest was charged on the strength of a statutory provision may be its objective was to compensate the Revenue for delay in payment of tax. But regardless of the reason which impelled the Legislature to…

M/S SHREE BHAGWATI STEEL ROLLING MILLS vs. COMMNR. OF CENTRAL EXCISE

Appeal is disposed of accordingly

C.A. No.-004280-004280 - 2007Supreme Court24 Nov 2015

…(4) SCC 192, has held, following two earlier judgments of this Court, as follows:- “This Court in India Carbon Ltd. v. State of Assam [(1997) 6 SCC 479] has held, after analysing the Constitution Bench judgment in J.K. Synthetics Ltd. v. CTO [(1994) 4 SCC 276] that interest can be levied and charged on delayed payment of tax only if the statute that levies and charges the tax makes a substantive provision in this behalf. There being no substantive provision in the Act for the levy of interest on arrears of tax that applied to purchases of sugarcane made subsequent to the date of commenceme…

M/S SHREE BHAGWATI STEEL ROLLING MILLS vs. COMMNR. OF CENTRAL EXCISE

Appeal is disposed of accordingly

C.A. No.-004280-004280 - 2007Supreme Court24 Nov 2015

…(4) SCC 192, has held, following two earlier judgments of this Court, as follows:- “This Court in India Carbon Ltd. v. State of Assam [(1997) 6 SCC 479] has held, after analysing the Constitution Bench judgment in J.K. Synthetics Ltd. v. CTO [(1994) 4 SCC 276] that interest can be levied and charged on delayed payment of tax only if the statute that levies and charges the tax makes a substantive provision in this behalf. There being no substantive provision in the Act for the levy of interest on arrears of tax that applied to purchases of sugarcane made subsequent to the date of commenceme…

M/S.JASWAL NECO LTD. vs. COMMNR. OF CUSTOMS, VISAKHAPATNAM

C.A. No.-007189-007189 - 2005Supreme Court04 Aug 2015
Section 12Section 18Section 3ASection 68Section 9A

…he law.” We respectfully agree with the aforesaid view. In addition, it is clear that this Court has held that the levying of interest can 18 Page 19 JUDGMENT only be by a substantive provision (See: J.K. Synthetics Ltd. v. Commercial Taxes Officer, (1994) 4 SCC 276 at paragraph 16), thereby making it clear that such levy can only be prospective. 25. Further, in India Carbon Ltd. v. State of Assam, (1997) 6 SCC 479, this Court held:- “11. Section 9(2-A) makes applicable to the assessment, re-assessment, collection and enforcement of Central sales tax the provisions relating to offences…

M/S.JASWAL NECO LTD. vs. COMMNR. OF CUSTOMS, VISAKHAPATNAM

C.A. No.-007189-007189 - 2005Supreme Court04 Aug 2015
Section 12Section 18Section 3ASection 68Section 9A

…he law.” We respectfully agree with the aforesaid view. In addition, it is clear that this Court has held that the levying of interest can 18 Page 19 JUDGMENT only be by a substantive provision (See: J.K. Synthetics Ltd. v. Commercial Taxes Officer, (1994) 4 SCC 276 at paragraph 16), thereby making it clear that such levy can only be prospective. 25. Further, in India Carbon Ltd. v. State of Assam, (1997) 6 SCC 479, this Court held:- “11. Section 9(2-A) makes applicable to the assessment, re-assessment, collection and enforcement of Central sales tax the provisions relating to offences…

COMMISSIONER OF INCOME TAX-III vs. M/S. CALCUTTA KNITWEARS, LUDHIANA

C.A. No.-003958-003958 - 2014Supreme Court12 Mar 2014
Section 132Section 158B

…Page 1 JUDGMENT 1 REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 3958 OF 2014 (SPECIAL LEAVE PETITION(C.)NO.10542 OF 2011) COMMISSIONER OF INCOME TAX - III APPELLANT VERSUS M/S.CALCUTTA KNITWEARS, LUDHIANA RESPONDENT WITH C.A.NO.3959 OF 2014 @ S.L.P.(C)NO.11943 of 2011 WITH C.A.NO.3960 OF 2014 @ S.L.P.(C)NO.17662 of 2011 WITH C.A.NO.3961 OF 2014 @ S.L.P.(C)NO.17656 of 2011 WITH C.A.NO.3962 OF 2014 @ S.L.P.(C)NO.17661 of 2011 WITH C.A.NO.3963 OF 2014 @ S.L.P.(C)NO.2804 of 2012 WITH C.A.NO.3964 OF 2014 @ S.L.P.(C)N…

COMMISSIONER OF INCOME TAX-III vs. M/S. CALCUTTA KNITWEARS, LUDHIANA

C.A. No.-003958-003958 - 2014Supreme Court12 Mar 2014
Section 132Section 158B

…Page 1 JUDGMENT 1 REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 3958 OF 2014 (SPECIAL LEAVE PETITION(C.)NO.10542 OF 2011) COMMISSIONER OF INCOME TAX - III APPELLANT VERSUS M/S.CALCUTTA KNITWEARS, LUDHIANA RESPONDENT WITH C.A.NO.3959 OF 2014 @ S.L.P.(C)NO.11943 of 2011 WITH C.A.NO.3960 OF 2014 @ S.L.P.(C)NO.17662 of 2011 WITH C.A.NO.3961 OF 2014 @ S.L.P.(C)NO.17656 of 2011 WITH C.A.NO.3962 OF 2014 @ S.L.P.(C)NO.17661 of 2011 WITH C.A.NO.3963 OF 2014 @ S.L.P.(C)NO.2804 of 2012 WITH C.A.NO.3964 OF 2014 @ S.L.P.(C)N…

M/S. MODIPON FIBRE COMPANY vs. COMMNR. OF CENTRAL EXCISE, MEERUT

C.A. No.-008529-008531 - 2001Supreme Court25 Oct 2007
For Respondent: Commissioner of Central Excise,Meerut
Section 35LSection 4

…is Court in the cases of IDL Chemicals Ltd. v. Collector of Central Excise reported in (1997) 5 SCC 311; MRF Ltd. v. Collector of Central Excise, Madras reported in (1997) 5 SCC 104; J.K. Synthetics Ltd. v. Commercial Taxes Officer reported in (1994) 4 SCC 276; Harshad Shantilal Mehta v. Custodian and ors. reported in (1998) 5 SCC 1 and Associated Cement Companies Ltd. v. State of Bihar and ors. reported in (2004) 7 SCC 642. 6. Dr. R.G. Padia, learned senior counsel appearing on behalf of the Department, submitted that on the date when the assessee had filed price declaration under Rule 173-C,…

J.K. Synthetics Ltd. v. CTO (4 SCC 276) — Cited in 18 Judgments | BharatTax