HERO HONDA MOTORS LIMITED Vs. STATE OF HARYANA

JUDGEMENT

(1.) THE appellant challenges orders Annexures A -13, A -13/A and A -13/B passed by the Haryana Tax Tribunal, at Chandigarh holding that the assessing authority was justified in passing the order imposing interest.

(2.) COUNSEL for the appellant submits that assessment proceedings for assessment year 1998 -99 concluded without levy of interest but while considering the question of penalty, a separate order was passed imposing interest. The assessing authority was required to impose interest at the time of assessment and in case interest was not imposed, was required to rectify the error by resort to Section 33 of the Haryana Sales Tax, Act, 1973 (hereinafter referred to as "the Act'). The assessing authority has no jurisdiction to pass a separate order imposing interest after assessment had concluded. Counsel for the appellant relies upon a judgment of the Hon'ble Supreme Court in Commissioner of Trade Tax, U.P. Versus Kanhai Ram Thekedar, 2005 141 STC 1(SC). Counsel for the appellant prays that the Tribunal has affirmed the order passed by the assessing authority without considering that such an order cannot be passed.

(3.) COUNSEL for the State of Haryana submits that during assessment proceedings, a separate notice was served, requiring the appellant to show cause why penalty and interest should not be imposed. The assessment order was passed but the show cause notice, regarding penalty and interest remained pending. The assessing authority was well within its jurisdiction to decide the notice and while dropping penalty proceedings, has imposed interest on delayed deposit of tax.