Punjab Roadways Cannot Deprive Himachal Pradesh Govt Of Passenger Tax, Interest On Delayed Payment When Its Buses Are Plying On Territory: HC
Kapil Dhyani
13 Nov 2024 8:25 PM IST
The Himachal Pradesh High Court recently directed the Punjab Roadways to clear the interest due upon it for delayed payment of passenger tax and surcharge to the HP government. A division bench of Acting Chief Justice Tarlok Singh Chauhan and Justice Satyen Vaidya observed that the body first failed to deposit any tax with the authorities of Himachal Pradesh despite the fact that it...
The Himachal Pradesh High Court recently directed the Punjab Roadways to clear the interest due upon it for delayed payment of passenger tax and surcharge to the HP government.
A division bench of Acting Chief Justice Tarlok Singh Chauhan and Justice Satyen Vaidya observed that the body first failed to deposit any tax with the authorities of Himachal Pradesh despite the fact that it had been running its buses within its territory, and then disputed liability of interest.
“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,” it held.
The development comes in a writ petition preferred by the body against imposition of Rs.18,31,446/- interest under the Himachal Pradesh Passenger and Goods Taxation Act, 1955.
Petitioner (Punjab Roadways) claimed that an amount of Rs.83,25,082/- due on account of passenger tax and surcharge was deposited by it to the HP government. However, it disputed the imposition of penalty on the ground that it had filed the tax in Gurdaspur (Punjab) “due to sheer inadvertence and under bonafide mistake”.
The Himachal Pradesh government on the other hand argued that petitioner cannot claim any exemption from payment of interest towards its own negligence and as per the provisions of Section 12A of the HP PGT Act, it is mandatorily required to pay amount towards interest.
Agreeing, the High Court observed that instead of assailing the orders passed by the authorities, Petitioner should have moved the tax authorities in Punjab for refund of the tax or a part thereof, that according to it had been paid by inadvertence.
“…or if the tax was wrongly paid, recovered or retained, it was there that the petitioner could have concomitantly invoked the doctrine/principles of unjust enrichment, equity, justice and good conscious. However, as regards the imposition of tax which is not disputed and the interest thereupon, the petitioner can have no grouse qua the same, as it has been recovered in consonance with the provisions of the Act,” High Court said and directed Punjab Roadways to clear the outstanding interest.
Appearance: Advocate Vinod Chauhan for Petitioner; Advocate General Anup Rattan with Addl. AG Sushant Kaprete for State.
Case title: General Manager, Punjab Roadways Pathankot v. Excise & Taxation Commissioner-cum-Revisional Authority and ors.
Citation: 2024 LiveLaw (HP) 75
Case no.: CWP No. 9777 of 2014
