SANT LAL TEK CHAND Vs. STATE OF HARYANA

JUDGEMENT

(1.) AT issue in these writ petitions (C. W. P. Nos. 11797 and 10955 of 1988) under Articles 226/227 of the Constitution of India is the legality and constitutional validity of Section 59 of the Haryana General Sales Tax Act, 1973. Challenge is also directed against order dated August 19, 1988, of the Excise and Taxation Officer-cum-Assessing Authority, Kaithal (respondent No. 2), levying interest on the amount of tax which had not been paid within the prescribed period and the imposition of penalty of Rs. 15,000 under Section 30 of the Act.

(2.) FIRST the factual matrix : Sant Lal Tek Chand, the petitioner in C. W. P. No. 11797 of 1988, is a registered partnership concern engaged in the business of commission agency and also rice shelling at Kaithal. The petitioner-firm is registered both under the Haryana General Sales Tax Act, 1973 ("the Act", for short) and the Central Sales Tax Act, 1956 (hereinafter referred to as the "central Act" ).

(3.) THE Excise and Taxation Officer-cum-Assessing Authority, Kaithal, (respondent No. 2) created demand of Rs. 1,31,455 on the petitioner-firm vide order dated May 10, 1980. The petitioner appealed to the Deputy Excise and Taxation Commissioner (Appeals), Ambala. He stayed the recovery of penalty in terms of proviso to Sub-section (5) of Section 39 of the Act. The appeal, was, however, dismissed on March 31, 1983, by the Joint Excise and Taxation Commissioner, Ambala. Aggrieved, the petitioner filed a second appeal before the Sales Tax Tribunal, Haryana, Chandigarh, under Sub-section (2) of Section 39 of the Act. The petitioner filed an application for entertainment of appeal without prior payment of the amount of penalty and also prayed for stay of recovery of the said amount of penalty. The learned Sales Tax Tribunal entertained the appeal and granted stay of the amount of penalty under Sub-sections (5) and (6) of Section 39 of the Act. Ultimately, the second appeal was also dismissed by the Tribunal on May 20, 1987. The interim stay order, thus, stood vacated.