2015 (9) TMI 208 - HC - VAT and Sales Tax

Levy of interest Computation of interest period Tribunal vide impugned order held that interest was leviable from date of order by which assessing authority or any other competent authority had taxed incidental charges for first time for any year Held that - primary issue that arises for consideration relates to date from which interest would be chargeable It was not disputed that issue stands concluded by judgment of apex court in J. K. Synthetics Ltd. v. Commercial Taxes Officer 1994 (5) TMI 233 - SUPREME COURT wherein it was held that interest was payable by dealer from date of passing of assessment order In light of said decision, interest chargeable from date of passing of assessment order and not from date of passing of assessment order in any other year by which assessing authority has taxed incidental charges for first time Decided against Assesse.

Summary

Issues:
- Interpretation of legal provisions regarding inclusion of incidental charges in gross turnover under the Haryana Value Added Tax Act, 2003.
- Determination of the date from which interest is leviable in cases involving assessment orders and taxation of incidental charges.
- Adjudication of interest issue when already decided contrary to an earlier decision.
- Justification of upholding interest from the date of order by any Assessing Authority who has taxed incidental charges for the first time.

Interpretation of Legal Provisions on Incidental Charges:
The appellant, engaged in procurement activities, challenged an additional demand raised by the Assessing Officer for incidental charges like dami, dalali, and mandi. The appeal process involved various authorities, leading to the Tribunal upholding the levy of tax on incidental charges and calculating interest from the date of the first assessment for any year. The Tribunal's decision was influenced by a previous judgment regarding the levy of interest till the actual payment of the demand. The High Court, considering a similar case precedent, ruled against the appellant, concluding that incidental charges should be included in the gross turnover.

Date for Levying Interest on Assessment Orders:
The primary issue revolved around determining the date from which interest should be chargeable - either from the assessment order in question or from the assessment order where the incidental charges were first taxed. Citing a Supreme Court judgment, the High Court clarified that interest is payable from the date of the passing of the assessment order. As a result, interest would be chargeable from the date of the assessment order under consideration, not from the date of assessment orders in other years where incidental charges were initially taxed.

Adjudication of Interest Issue and Previous Decisions:
The High Court addressed the issue of interest adjudication, highlighting that the matter had been previously decided contrary to an earlier decision. The Court referred to established legal principles and upheld that interest is payable from the date of the assessment order, aligning with the precedent set by the Supreme Court. Consequently, the Court disposed of the appeals based on the interpretations and conclusions drawn regarding the date for levying interest in cases involving assessment orders and taxation of incidental charges.

Conclusion:
The High Court's judgment in the appeal under the Haryana Value Added Tax Act, 2003, clarified the inclusion of incidental charges in the gross turnover and the date from which interest is leviable on assessment orders. By referencing relevant legal precedents, the Court provided a comprehensive analysis and resolved the issues raised by the parties, ultimately disposing of the appeals in line with established legal principles and interpretations.