General Manager Vs Excise & Taxation Commissioner-cum-Revisional Authority and Ors. (Himachal Pradesh High Court)
Himachal Pradesh High Court held that interest as per provisions of section 12-A of the Himachal Pradesh Passenger and Goods Taxation Act, 1955 leviable as petitioner didn’t deposit required tax with the authorities of Himachal Pradesh.
Facts- The Assessing Authority, Damtal had assessed the petitioner for the years 1991-92 to 1999- 2000 and created total additional demand of Rs.1,01,76,828/-. An amount of 83,25,082/- due on account of passenger tax and surcharge was deposited by the petitioner whereas, an appeal was filed before the Appellate Authority (North Zone, Palampur) by the petitioner against the imposition of interest and penalty amounting to Rs.18,51,746/-. The Appellate Authority waived off an amount of Rs.20,300/- towards penalty and as regards the interest levied vide assessment order, the same was upheld by the Appellate Authority vide order dated 19.10.2012.
Aggrieved by the order, the petitioner preferred Revision Petition before the Excise & Taxation Commissioner-cum-Revisional Authority, Himachal Pradesh, who vide order dated 15.9.2014 dismissed the Revision Petition.
Conclusion- Held that it is not in dispute that the petitioner did not deposit any tax with the authorities of Himachal Pradesh despite the fact that it had been running its buses within its territory and thus, in this manner, it deprived the State of Himachal Pradesh of its legitimate amount of tax. Once that be so, obviously, it would be liable to pay interest, for it is more than settled that a person or authority deprived of use of money to which one is legitimately entitled to has a right to be compensated for the deprivation, which may be called interest, compensation or damages.
