1989 (8) TMI 309 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of provisions related to payment of tax and interest under the Haryana General Sales Tax Act, 1973.
2. Application of rule 62 of the Haryana General Sales Tax Rules, 1975 in extending the time for filing returns and payment of tax.
3. Liability of a dealer to pay interest on tax due when granted an extension for filing returns.

Analysis:
The judgment of the Court, delivered by SUKHDEV SINGH KANG, J., pertained to a reference under section 42 of the Haryana General Sales Tax Act, 1973. The case involved a dealer who was required to file a return for the quarter ending 30th June, 1976, by 30th July, 1976. The dealer sought an extension, which was granted, allowing the filing of the return by 6th August, 1976. The Assessing Authority, relying on a previous court decision, held the dealer liable to pay interest under section 25(5) of the Act. The dealer appealed, and the Sales Tax Tribunal, Haryana, ruled that the dealer was not liable to pay interest due to the extension granted by the competent authority under rule 62 of the Rules.

The legal issue revolved around the interpretation of statutory provisions, specifically section 25 of the Act and rules 2(q), 17, and 62 of the Rules. Section 25 outlined the submission of returns and payment of tax requirements, including the liability to pay interest for non-payment. Rule 62 empowered the appropriate authority to extend prescribed periods for certain acts for special reasons. The Court emphasized that the liability to pay interest on tax non-payment commences from the date following the last date for return submission under section 25(2) of the Act.

The Court concluded that the dealer, by complying with the extended deadline, did not incur the liability to pay interest. It rejected the argument that interest accrues automatically irrespective of extension orders under rule 62. The Court distinguished the present case from precedent cases like Haji Lal Mohd.'s case and Sales Tax Officer v. Dwarika Prasad Sheo Karan Dass, emphasizing the impact of rule 62 in absolving the dealer from interest payment.

In summary, the Court held that when the appropriate authority extends the deadline for filing returns and tax payment, the prescribed date shifts accordingly. If the dealer meets the extended deadline, they are not liable to pay interest. The judgment answered the reference question in the negative, favoring the dealer and rejecting the Revenue's claim for interest payment.

This comprehensive analysis highlights the Court's interpretation of statutory provisions, the application of rule 62 in extending deadlines, and the dealer's liability concerning interest payment on tax due after receiving an extension.