- (1.) On a reference made by the Sales Tax-Tribunal, Haryana under Section 42(1) of the Haryana General Sales Tax Act, 1973 (for short the Act), we are called upon to answer the following question of law: "Whether in the facts and circumstances of the case, where extension had been granted by the assessing authority on the condition of payment of interest under Section 15(5) of the Haryana General Sales Tax Act, interest has been rightly charged under the provisions of law -
(2.) In order to answer the aforesaid question, it is not necessary to refer to the detailed facts and those may be stated very briefly. For the assessment year 1974-75 the assessee was required to file its returns for the four quarters ending 30th June, 30th September, 31st December and 31st March. Instead of filing the returns the assessee sought extension of time for filing the same under Rule 62 of the Haryana General Sales Tax Rules, 1975 (hereinafter called the Rules). It is common case of the parties that the Assessing Authority extended the time for filing the returns for all the four quarter extension was granted subject to the condition that the assessee would pay interest on the delayed payment whereas no such condition was imposed in regard to the other three quarters. The Assessing Authority, however, charged interest for late payment of tax for the extended period in accordance with the provisions of sub-Section (5) of Section 25 of the Act. Aggrieved by the order of the Assessing Authority, the assessee filed an appeal before the Joint Excise and Taxation Commissioner, Rohtak. The Appellate Authority upheld the order of the Assessing Authority in so far as it pertained to the charging of interest for the third quarter ending 31st December,1974 but set aside the same qua the other three quarters on the ground that no such condition of charging of interest had been imposed while granting extension of time for filing the returns. Still not satisfied with the Appellate order, the assessee filed a second appeal before the Sales Tax, Tribunal, Haryana who as per his order dated 5.5.1983 quashed the order of the Joint Excise and Taxation Commissioner regarding payment of interest for the quarter ending 31st December, 1974, it being held that liability to pay tax arose on the filing of the return and that extension in the period for filing the return automatically resulted in the extension of time for payment of tax. The stand of the Revenue that extension of time was conditional i.e. subject to payment of interest and, therefore, it did not absolve the assessee from payment of interest in view of the provisions of Section 25 of the Act was not accepted. The Tribunal followed its earlier decision in the case of M/s Rohtas Industries, Kundli v. State of Haryana which was later approved by this Court in State of Haryana v. M/s Rohtas Industries, 1990 79 STC 238. At the instance of the Revenue, the Tribunal has referred the aforesaid question of law for the opinion of this Court.
(3.) Since no interest has been charged from the assessee for the first, second and fourth quarters of the relevant assessment year, we are only concerned with the third quarter and the question referred to this Court pertains only to the charging of interest for this quarters.;