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TMI Blog2015 (4) TMI 571X X X X Extracts X X X X X X X X Extracts X X X X ..... na Sales Tax Tribunal (hereinafter referred to as 'the Tribunal'). The question placed for reference reads as follows:- "Whether on the facts and in the circumstance of the case H.M.T. Ltd., a public sector undertaking, is liable to pay interest under Section 9(2) of the Central Sales Tax Act, 1956 read with Section 25(5) of the Haryana General Sales Tax Act, 1973/Section 14(6) of the Haryana Value Added Tax Act, 2003 for its failure to pay tax on inter-State sale of tractors at 4% against declarations in form C after publication of notification No. S.O. 122/C.A. 74/1956/S.8/ 2001 in the official Gazette on 21.8.2001 by which notification No. S.O. 15/C.A.74/56/S.8/91 dated 31.1.1991 specifying lower rate of tax at 2% was rescinded, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rded by the Hon'ble Supreme Court was based upon the peculiar facts of the case and even otherwise relates to penalty. We have heard counsel for the parties, perused the question of law as well as the entire paper book. The short question that requires an answer is the scope and ambit of Section 25(5) of the 1973 Act and whether a public sector undertaking which does not deposit tax at the requisite rate can escape levy of interest by alleging a bona fide error? Admittedly despite its obligation to deposit tax @ of 4%, the assessee deposited tax @ 2% for assessment years 2001-02 to 2005-06. Consequently, the Excise and Taxation Officer-cum- Assessing Authority, Panchkula, vide order dated 28.09.2005 demanded additional tax for these y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opriate State shall, on behalf of the Government of India, assess re-assess, collect and enforce payment of tax, including any interest or penalty, payable by a dealer under this Act as if the tax or interest or penalty payable by such a dealer under this Act is a tax or interest or penalty payable under the general sales tax law of the State; and for this purpose they may exercise all or any of the powers they have under the general sales tax law of the State; and the provisions of such law, including provisions relating to returns, provisional assessment, advance payment of tax, registration of the transferee of any business, imposition of the tax liability of a person carrying on business on the transferee of, or successor to, such busin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where an assessee defaults in payment of the requisite tax, payment of interest is a necessary consequence of such a default. Section 25(5) of the Act does not admit to any exception much less on a plea that the assessee is a public sector undertaking or that it committed a bona fide error. Even otherwise the assessee does not deny the default. We cannot but reject the plea based upon a bona fide error as there is no ambiguity in the notification. The failure to deposit tax was the result of gross negligence that cannot be condoned. Consequently, we answer the question of law against the assessee by holding that where an assessee, whether a public sector undertaking or otherwise, defaults in payment of tax without a bona fide explanation o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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