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TMI Blog2015 (4) TMI 571X X X X Extracts X X X X X X X X Extracts X X X X ..... t reject the plea based upon a bona fide error as there is no ambiguity in the notification. The failure to deposit tax was the result of gross negligence that cannot be condoned. - Where an assessee, whether a public sector undertaking or otherwise, defaults in payment of tax without a bona fide explanation or there is no dispute pending as to the levy of tax, a necessary consequence of such default shall in levy of interest under Section 25(5) of the Act. - Decided against assessee. - VAT Reference No. 2 of 2010., VAT Reference No. 3 of 2010., VAT Reference No. 4 of 2010, VAT Reference No. 5 of 2010, VAT Reference No. 6 of 2010 - - - Dated:- 27-11-2014 - MR. RAJIVE BHALLA MR. B.S. WALIA, JJ. For The Appellant : Mr. Sachin Bhardwaj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee in depositing tax @ of 2% without mens-rea should not invite interest which even otherwise partakes the nature of a penalty. Counsel for the appellant submits that as the assessee was of the bona fide opinion that it was obliged to pay tax @ of 2%, the question of law may be answered in favour of the assessee. In support of his arguments, counsel for the petitioner relies upon a judgment in J.K. Synthetics Ltd. Vs. Commercial Taxes Officer, (1994) 4 SCC 276. Per contra, counsel for the revenue submits that Notification dated 1.2.1991 stood rescinded on 21.8.2001. The assessee was required to pay tax @ 4% for the years 2001-02 to 2005- 06 but deposited tax @ of 2%. The fact that the Assessing Officer may have ignored this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. As is apparent from the facts, the assessee was required to pay tax @ 4% on sale of tractors outside the State of Haryana but admittedly deposited tax @ 2% for assessment years 2001-02 to 2005- 06. The admitted default of the assessee led to the raising of a demand for the tax as well as levy of interest under Section 9(2) of the Central Sales Tax Act, 1956 read with Section 25(5) of the Haryana General Sales Tax Act. Section 9(2) of the Central Sales Tax Act, 1956 empowers a State Govt. to collect tax, penalty and interest on behalf of the Central Government. Section 25(5) of the Haryana General Sales Tax Act provides that in case of default in payment of tax, the assessee shall be liable to pay interest. Section 9(2) of the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... X XX XX XX XX 25(5) If any dealer fails to pay tax, as required by sub-section (2A) or by sub-section (3), he shall be liable to pay in addition to the tax payable, simple interest on the amount of tax remaining unpaid at one per cent per month from the date commencing with the date following the last date for the payment of tax, for a period of one month and at one and half percenum per month thereafter during the period he continues to make default in the payment: Provided that where the amount of tax not paid as required under sub-section (2A) or sub-section (3) does not exceed five hundred rupees, the interest payable thereon shall not exceed the amount of tax not so paid: Provided further that for the purposes of calculation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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