2003 (5) TMI 487 - HC - VAT and Sales Tax

Summary

Issues:
Levy of interest on non-payment of tax under the Haryana General Sales Tax Act, 1973.

Analysis:
The petitioners, engaged in rice shelling, supplied levy rice but did not pay the tax along with returns, leading to interest levy under the Act. Their plea for interest waiver based on a government letter was rejected by the assessing authority. Revision petitions were dismissed, and a Division Bench directed the State Government to decide on the representations. The competent authority, in compliance, declined the waiver, stating that the policy applied to cases up to October 31, 1989, not to the petitioners' 1992-93 and 1993-94 assessments. The authority emphasized that tax payment is regulated by law, irrespective of the buyer's payment to the seller.

The petitioner's argument for waiver was deemed legally unsustainable. The policy for interest waiver was intended to resolve pending cases by October 1989, not for later assessments. The Court upheld the competent authority's decision, stating that the petitioners' cases did not fall within the policy's scope due to default in tax payment for the relevant years.

During the hearing, no evidence was presented to show extension of the policy to cases with tax payments after October 31, 1989. As a result, the Court found no grounds to direct the respondents to grant the benefit of the policy to the petitioners. The writ petition was ultimately dismissed, upholding the decision of the competent authority regarding interest waiver denial.

Therefore, the Court dismissed the writ petition, affirming the decision of the competent authority to decline interest waiver to the petitioners based on the government policy applicable only up to October 31, 1989, not covering the petitioners' assessments for 1992-93 and 1993-94.