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[Cites 6, Cited by 0]

Punjab-Haryana High Court

M/S. Kelvinator Of India Ltd vs State Of Haryana And Another on 9 May, 2012

Bench: Ajay Kumar Mittal, G.S. Sandhawalia

CWP No. 7587 of 1992                                                       1


        IN THE HIGH COURT OF PUNJAB AND HARYANA AT
                        CHANDIGARH


                                                CWP No. 7587 of 1992
                                      DATE OF DECISION: May 09, 2012


M/s. Kelvinator of India Ltd., Bhiwani and another .........PETITIONER(S)


                                 VERSUS



State of Haryana and another                         ......RESPONDENT(S)


CORAM:      HON'BLE MR. JUSTICE AJAY KUMAR MITTAL
            HON'BLE MR. JUSTICE G.S. SANDHAWALIA

Present:    Mr. S.C. Sibal, Sr. Advocate,
            with Mr. V.S. Rana, Advocate,
            for the petitioner.

            Mr. Gagandeep Singh Wasu, Addl. A.G., Haryana,
            with Ms. Aakanksha Sawhney, DAG, Haryana.


AJAY KUMAR MITTAL J. (ORAL)

1. In this petition filed under Articles 226 and 227 of the Constitution of India, the petitioner has prayed for quashing for assessment order dated 03.03.1992 (Annexure P-1) whereby, additional demand of `30,64,958 had been created under Haryana General Sales Tax Act, 1973 and `62,262 had been created under the Central Sales Tax Act, 1956. A further prayer has been made for refund of the amount of purchase tax deposited by the petitioner and also for declaring the provisions of Sections 2, 6 and 24 amended by Haryana Act No. 4 of 1991 as ultra vires.

2. Learned counsel for the petitioner submitted that except for the prayer with regard to the levy of interest by the assessing authority in the CWP No. 7587 of 1992 2 assessment order Annexure P-1, other reliefs claimed in the writ petition are not being pressed. According to the learned counsel, the levy of interest by the assessing authority is in violation of the judgment of the Hon'ble Apex Court in J.K. Synthetics Ltd. vs. Commercial Tax Officer (1994) 94 STC

422. Learned counsel for the State has not been able to distinguish the applicability of the said judgment for the purpose of the interest levied in the assessment order.

3. Accordingly, the writ petition is allowed to the limited extent of levy of interest for the period prior to passing of the order of assessment. The assessing authority may issue fresh notice of demand accordingly by modifying the interest component in accordance with the principles laid down in J.K. Synthetic Ltd.'s case (supra).




                                                         (Ajay Kumar Mittal)
                                                                Judge


09.05.2012                                                (G.S. Sandhawalia)
shivani                                                          Judge