- (1.) These three cases relate to three assessment years viz. 1973-74, 1975-76 and 1976-77. The short issue is - Was the petitioner-assessee liable to pay despite its having deposited the tax in accordance with the return A few facts may be noticed.
(2.) The petitioner is engaged in the manufacture of iron and steel rounds. It purchases Ingots and Billets as the essential inputs. On the end product, the assessee deducted the amount of sales tax paid on the raw material viz. the Billets and Ingots. On the basis of the taxable turn-over, the assessee deposited the sales tax. Admittedly, the tax paid on the purchase of raw material had been deducted. Initially, the returns filed by the assessee were accepted. Subsequently, the matter was re-opened on the ground that the assessee could not have deducted the amount of tax paid on the purchase of Ingots and Billets. Thus, an addition was made to the taxable turn-over by invoking the provisions of Section 25(5) of the Haryana General Sales Tax Act, 1973 . The assessee was held liable to pay interest on the amount of tax so determined by the competent authority. The order was affirmed by the appellate authority and the Tribunal. Hence these cases under Section 42(2) of the Act.
(3.) The solitary contention raised by Mr. Jhingan, learned counsel for the petitioner in all the three cases is that the Tribunal had primarily relied upon the decision of their Lordships of the Supreme Court in Associated Cement Co. Ltd. v. Commercial Tax Officer, 1981 48 STC 466, to sustain the claim of the Revenue for payment of interest. This decision has been considered by the Apex Court in J.K. Synthetics Ltd. v. Commercial Taxes Officer, 1994 94 STC 422. In view of the latest pronouncement, the view taken by the Tribunal cannot be sustained.;