2013 (4) TMI 690 - HC - VAT and Sales Tax

Summary

Issues involved:
The issues involved in the judgment are the challenge to the provisions of Haryana Act No. 4 of 1991 levying purchase tax on goods also subject to sales tax, and the levy of interest by the revisional authority based on legal judgments.

Challenge to Haryana Act No. 4 of 1991:
The writ petition challenged the provisions of Haryana Act No. 4 of 1991, which imposed purchase tax on goods subject to sales tax under the Haryana General Sales Tax Act, 1973. The petitioner argued that the vires of the Act were upheld by the Supreme Court in a previous judgment. The respondents relied on a Full Bench judgment to support the liability for interest or penalty based on the conduct of the assessee. The court found that the legality of Act No. 4 of 1991 had been upheld by a Full Bench of the court, following the Supreme Court's decision, thus dismissing the challenge to the Act.

Levy of Interest:
Regarding the levy of interest, the petitioner had filed quarterly returns on time and paid sales tax accordingly. However, the revisional authority determined that the petitioner had also paid hire charges for certain equipment subject to purchase tax under the Act. The court noted a dispute over the levy of purchase tax and referred to legal precedents to determine the liability for interest. It was highlighted that interest should be paid from the date of the imposition of such liability, not from the date of the assessment order. Consequently, the court quashed the initial levy of interest but directed the petitioner to pay interest from the date of the revisional authority's order.

This summary provides a detailed overview of the judgment, addressing the issues involved, the challenge to the Haryana Act No. 4 of 1991, and the levy of interest based on the conduct of the assessee and legal precedents.