Interest not leviable on tax paid as per return where controlling precedent settled the governing statutory scheme.

Interest was held not leviable where the assessee had paid tax in accordance with the return, because the governing provisions were materially similar to those considered in the controlling Supreme Court precedent. The earlier Tribunal basis was treated as no longer tenable, and later reassessment of taxable turnover did not itself justify charging interest. The High Court also declined to require a formal reference to the Tribunal, since the facts were admitted and the applicable law had already been settled, avoiding unnecessary procedural delay. The question was answered in favour of the assessee.

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Issues: Whether interest was leviable when the assessee had deposited tax in accordance with the return.

Analysis: The liability to pay interest was examined in the light of the later authoritative ruling that where the assessee pays tax on the amount shown in the return, interest is not leviable. The provisions of section 25(3) and section 25(5) of the Haryana General Sales Tax Act, 1973 were treated as akin to the provisions considered by the Supreme Court, and the earlier basis adopted by the Tribunal was held no longer tenable. The Court also declined to insist on a formal reference to the Tribunal because the facts were admitted and the controlling law had already been settled, applying a practical and updating construction to avoid unnecessary procedural delay.

Conclusion: Interest was not leviable on the facts of the case, and the question was answered in favour of the assessee.

Ratio Decidendi: Where tax is paid according to the return and the governing statutory scheme is materially similar to that considered in the controlling precedent, interest cannot be levied merely because of a later reassessment of the taxable turnover.

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