HINDUSTHAN ENGINEERING AND INDUSTRIES LTD Vs. ASSISTANT COMMISSIONER

JUDGEMENT

(1.) The petitioner has challenged an order of October 29, 2015 by which the petitioner's application under the West Bengal Sales Tax (Settlement of Dispute) Act, 1999 filed on August 31, 2015 has been dismissed upon the petitioner failure to pay an amount of interest of Rs.59,84,917/ -. An assessment order was made in respect of the petitioner for the four quarters ended March 31, 2010 under the West Bengal Sales Tax Act, 1994. Such order noticed that a total payment of Rs.4,91,67,817/ - had been made by the petitioner against a total assessed amount of Rs.4,94,09,477/ -. The assessment order provided for a penalty of Rs.1,50,000/ - and an interest component of Rs.59,84,917/ -. A detailed calculation on account of the interest was indicated in the assessment order. The calculation showed the quantum of interest payable over the four quarters at varying rates. It is evident that the net amount due from the petitioner on account of sales tax was assessed and the amount actually paid by the petitioner was seen, to arrive at the short -fall on the relevant dates to calculate the quantum of interest payable over the four quarters by the petitioner. Thus, the calculation of the interest as evident from the relevant assessment order is on account of the delay in actual payment of tax by the petitioner and a small component thereof is the interest levied for the short payment of tax.

(2.) Over the entire financial year, the petitioner's short payment of tax amounted to about Rs.2.41 lakh. Thus, the total interest component of Rs.59,84,917/ - calculated in the relevant assessment order contained a substantial part on account of the delay in making payment of the tax and a nominal part on account of the additional levy of tax for which no payment had been tendered. It cannot be said by any stretch of imagination that the entirety of the interest of Rs.59,84,917/ - indicated in the relevant assessment order pertained to the additional levy of tax made thereunder. After exhausting the remedy of appeal, the petitioner challenged the order of assessment in revision. Both the additional levy of tax and the quantum of interest awarded by the relevant assessment order were challenged in the appeal and in the revision.

(3.) During the pendency of the revision, on the basis of the amended provisions as to settlement in the said Act of 1999, the petitioner applied for settlement of the tax in dispute and the interest thereon by paying 55% of the tax in dispute. The amount of tax in dispute was Rs.2,41,660/ -. The petitioner now says that Section 7(1)(b) of the Act applies in this case. Such provision, in its material part, reads as follows: