AMAR CHAND Vs. STATE OF H.P.

JUDGEMENT

(1.) The contention of Mr. Khanna, learned Senior Advocate appearing for the Petitioner is that the Petitioner is not liable to pay interest even if prior to 8th January, 1999, the Petitioner was in default with respect to the payment of tax or surcharge if any, due from him under the H.P. Passengers and Goods Taxation Act, 1955.

(2.) H.P. Passengers and Goods Taxation Act, 1955 was amended by H.P. Passengers and Goods Taxation (Amendment) Act, 1998 which received the assent of the Governor on 4th January, 1999. This amendment Act came into force w.e.f. 8th January, 1999. By virtue of Section 2 of the Amendment Act, after Section 12 of the original 1955 Act, a new section, being Section 12-A was introduced, Clause (1) whereof provided that if any owner failed to pay the amount of tax or surcharge due from him under 1955 Act, he shall, in addition to the amount of tax or surcharge be also liable to pay simple interest on the amount of tax or surcharge due and payable by him at the rate of one percent per month. Sub-section (1) of Section 12-A thus introduced reads as under:

(3.) Mr. Khanna's contention is that the liability to pay interest as per Section 12-A would relate only to such delayed payment of tax or surcharge as would accrue after 8th January 1999 and that this liability cannot and would not relate to any default in the payment of tax or surcharge as might have been in existence before 8th January, 1999. We are in total disagreement with his contention. Even though Section 12-A being prospective in operation, and the liability to pay interest thereunder would arise only after 8th January, 1999, meaning thereby that prior to 8th January, 1999 even if an owner was in default with respect to the payment of the tax or surcharge, for any period prior to 8th January, 1999 with respect to any such default he would not be liable to pay interest but the liability to pay interest after 8th January, 1999 would certainly be attracted even if the default or the delayed payment relates to a period of time before 8th January, 1999. Only for the period prior to 8th January, 1999 he would not be liable to pay interest, which means that the reckoning of the interest liability would start only after 8th January, 1999.