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2023 (5) TMI 854 - HC - VAT and Sales TaxLiability to pay interest on additional tax - relevant date for commencement of interest liability - Additional demand of tax and interest under Section 14(6) of the Haryana Value Added Tax Act, 2003 - Income received by the dealer from M/s. Asia Motor Works against the repair of accidental trucks - warranty claim received in the shape of credit notes from the company i.e. M/s. Asia Motor Works in respect of the goods replaced during warranty claim and reduced from purchases - HELD THAT:- The judgment referred to by learned counsel for the respondents in UNITED RICELAND LIMITED AND ANOTHER VERSUS STATE OF HARYANA AND OTHERS [1995 (8) TMI 296 - PUNJAB HIGH COURT], and Chaudhary Tractor Company, Tohana, District Sirsa vs. State of Haryana [2006 (5) TMI 455 - PUNJAB AND HARYANA HIGH COURT] would not be applicable as these cases deal with the provision of demand of interest under Section 25(3) of the Haryana General Sales Tax Act, 1973. Even the judgment of the Hon'ble Supreme Court in Ghasi Lal's case [1965 (1) TMI 41 - SUPREME COURT] cannot be applied in the present case as the present case deals with the provisions of Haryana VAT Act, 2003. The relevant provision of 14(6) of Haryana VAT Act makes it abundantly clear that simple interest at one per cent per month is to be charged if the payment is made within ninety days from the last date specified for the payment of tax and two per cent per month for the whole of the period he makes the payment beyond ninety days. If the tax is not paid as per the Act, the assessee is liable to pay tax along with the interest as per provisions of Section 14(6) of the HVAT Act. The judgment referred to by learned counsel for the appellant in M/s. Faridabad Fabricators (P) Ltd., Faridabad vs. State of Haryana, is directly applicable to the facts of the present case. The assessee was required to pay the tax payable in accordance with the provisions of Section 14 of the HVAT Act and the Rules framed thereunder. Non-payment of tax according to the provision of the Act will certainly amount to failure to make payment of tax which renders the assessee liable to pay interest also as provided in Section 14(6). The liability to pay interest would be from the date the tax was supposed to be deposited by the assessee. The order passed by Haryana Tax Tribunal (respondent No. 2) is modified that the interest on the additional demand is leviable from the date of filing of the return - Appeal allowed.
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