Interest on revised tax demand waived on peculiar facts after telecom policy change and long litigation delay.

Interest on the tax demand arising from the revised liability under the Telecom Policy period was waived in favour of the assessees. The order notes that the earlier judgment had changed the legal position, so the demand for the relevant period had to be met by the assessees, but relief was granted on the interest component because of the commencement of the Telecom Policy in 1999 and the lapse of time in litigation. The order further states that the relief was confined to the peculiar facts of the matter and was not intended to serve as a precedent.

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Issues: Whether the interest payable on the tax demand, consequent upon the earlier judgment and the revised liability from the new Telecom Policy period, should be waived.

Analysis: The order records that the earlier judgment had altered the legal position and that the tax demand for the relevant period would now have to be met by the assessees. Having regard to the commencement of the Telecom Policy in 1999 and the lapse of time in litigation, the Court treated the case as one warranting relief on the interest component. The order also clarifies that the relief was granted on the peculiar facts of the matter and was not intended to operate as a precedent in other cases.

Conclusion: The interest for the period for which the tax demand was to be met was waived in favour of the assessees.

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