Extended return period under sales tax rules prevented interest liability when return and tax were filed within time.

Interest under section 25(5) of the Haryana General Sales Tax Act, 1973 was held not chargeable where the dealer filed the return and paid tax within the extended time granted by the competent authority. Rule 62 permits the prescribed period for filing returns and payment of tax to be extended for special reasons recorded in writing, and once that extension is validly granted, the original due date stands shifted to the extended date. As no default occurred within the extended period, the liability to automatic interest under section 25(5) did not arise. The question was answered in the negative and against the Revenue.

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Issues: Whether interest was chargeable under section 25(5) of the Haryana General Sales Tax Act, 1973, when the dealer filed the return and paid tax within the extended time granted by the competent authority under the Rules.

Analysis: Section 25(5) fastens liability to pay interest from the date following the last date for submission of the return, but Rule 62 empowers the appropriate authority, for special reasons recorded in writing, to extend the period prescribed for filing returns and paying tax. When such extension is granted, the prescribed date stands shifted to the extended date. If the dealer files the return and pays the tax within that extended period, the default contemplated by section 25(5) does not arise. The automatic-interest principle was held inapplicable because the statutory extension mechanism was invoked and operated in the case.

Conclusion: Interest was not chargeable; the question was answered in the negative and against the Revenue.

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