AI Drafter 
TaxTMI 
TaxTMI 
2015 (8) TMI 1004
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....een purchased from within the State of Haryana had been sold on a consignment basis and stock transfer basis. A demand for interest was also raised. Penal action under Section 47 was directed to be taken separately. Under the Central Sales Tax Act, 1956, a demand of only Rs. 44/- was made.The appeal against this order was dismissed by an order dated 29.07.2002 of the Joint Excise and Taxation Commissioner (A), Rohtak. It is important to note that the entire tax demanded had been paid by the petitioner to the respondents as a condition precedent to the maintainability of the appeal. The amounts had been paid between April, 1995 to August, 1996. However, the petitioner's appeal was allowed by an order dated 05.12.2008 passed by the Haryana Value Added Tax Tribunal. The Tribunal set aside the order and remanded the matter to the assessment authority for assessment following the decision of this Court in the case of State of Haryana and another Vs M/s Ambika Oil & Soap Industries, Rohtak, 103 STC 190. 3. The Excise and Taxation Officer-cum-Assessing Authority accordingly passed a fresh order dated 28.05.2009 holding that the petitioner was entitled to a refund of Rs. 11,47,390/-....
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....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 a half per cent 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 subsection (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 of interest, a period of fifteen days or more shall be deemed to be one month and the amount of fifty rupees or more but less than one hundred rupees shall be deemed to be one hundred rupees and a period of less than fifteen days and an amount of less than fifty rupees shall be ignored.39(5) No appeal shall be entertained unless it is filed within sixty days from the date of the order appealed against and the appellate authority is satisfied that the amount of tax assessed and the penalty a....
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....ied in clause (a) within ninety days of the receipt of such application failing which interest shall be payable to the dealer or other person at the rate specified in sub-section (5) of Section 25 of the Act, unless the Commissioner for reasons to be recorded in writing condones the delay. 38. Order Sanctioning Interest on Delayed Refunds (1) Where a refund payment order or a refund adjustment order is issued the authority issuing such order shall simultaneously record an order sanctioning the interest payable if any on such refunds, specifying therein, the amount of refund, the payment of which was delayed, the period of delay for which such interest is payable and the amount of interest payable by the State Government, and shall communicate the same to the dealer to whom the interest is payable and also to the Commissioner stating briefly the reasons for the delay in allowing the refund. (2) Where an order for the payment of interest on delayed refunds under sub-rule (1) has been made, the sanctioning authority shall issue to the dealer interest payment order in form S.T. 35." 8. In view of Section 39(5), the petitioner was compelled to pay the tax assessed in order t....
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.... sub section (2) of Section 43. The submission is not well founded. Section 43(2) entitles an assessee to interest in certain circumstances. Sub section (1) of Section 43 merely requires the assessing authority to refund in the prescribed manner the person concerned the amount of penalty, tax or interest paid by him in excess of the amount due from him under the HGST Act either by a refund voucher or at the option of the assessee, by adjustment. There is no implied, much less an express, bar on the payment of interest on the amount liable to be refunded. Sub section (2) entitles the dealer to interest at such rates and on such terms and conditions as may be prescribed in cases where the amount required to be refunded by the assessing authority by virtue of an order issued under the HGST Act is not so refunded to him within the period as may be prescribed. On behalf of the respondents, we are invited to read Section 43 (2) with Rule 35(b). Clause (b) of sub rule (1) of Rule 35 entitles the assessee to interest at the rate specified in Section 25(5) of the HGST Act, where there is a failure to refund any amount ordered by the Appellate or Revisional Authority within ninety days of th....
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....gar Motor Company Vs State of Haryana and another (CWP-2372-1994), the Excise and Taxation Officer imposed a penalty. The assessee deposited the amount of penalty and filed an appeal before the Joint Excise and Taxation Commissioner (Appeals). The appeal was allowed. The authorities, however, failed to refund the amount leading the petitioner to file the writ petition for the refund alongwith interest. The Division Bench by an order and judgement dated 05.09.1994 held:- "Inspite of notice and sufficient time allowed to the respondents, they have not filed any reply. Admittedly, the appeal has been allowed and the petitioner has become entitled to the refund of the amount deposited by it. Consequently, we dispose of the writ petition with a direction to the respondents to refund the amount of penalty deposited by the petitioner alongwith interest at the rate of 12% per annum from the date of deposit till the date of payment." (emphasis supplied) 15. In M/s Khem Ram Devi Sahai Vs State of Haryana, (2004) 23 PHT 330 (P&H) relied upon by the Tribunal, the petitioner's assessment was finalized by an assessment order dated 26.03.2003 and the petitioner was found entitled to ....
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....m the date of the deposit. 16. M/s Khem Ram Devi Sahai Vs State of Haryana's judgement followed a decision of the Division Bench of this Court in Saurabh Kumar & Bros. Vs State of Punjab and others, [2002] 127 STC 556 (P&H). In Saurabh Kumar & Bros. Vs State of Punjab and others, penalty was imposed by the assessing authority. The petitioner paid the penalty and filed the appeal. The appeal was allowed on 26.11.1997. The amount deposited was, however, not refunded. The petitioner submitted a representation on 06.06.1998 requesting for refund, but did not receive the same leading the petitioner to file the writ petition. Interest was granted on the basis of Section 12 of the Punjab General Sales Tax Act, 1948 which is not the same as the HGST Act which is involved in the case before us. Section 12(3) of the Punjab General Sales Tax Act, 1948, is, however, similar to Section 25(2) of the HGST Act and reads as under:- "12(3) Where any amount required to be refunded by the assessing authority to any person by virtue of an order issued under this Act is not refunded to him within ninety days of the date of the order, the dealer shall be entitled to get simple interest on such ....