Hemant Gupta, J.@mdashThe writ petition seeks quashing of assessment order and the subsequent proceedings creating liability against the
petitioners under the provisions of the Haryana General Sales Tax Act, 1973 (hereinafter referred to as ""the Act""). The liability created also
included liability to pay interest u/s 25(5) of the Haryana General Sales Tax Act. In the writ petition, one of the contentions raised is that u/s 9 of
the Act, purchase tax liability has been created if raw material is purchased in the State and used in manufacture of goods which are sent out from
the State other than by way of inter-State sale or export which was against the judgment in Goodyear India Limited Vs. The State of Haryana and
Another, . This was in the nature of tax on consignment of goods covered by entry 92B of List I. Further, the contention raised is that liability to
pay interest as per the scheme of the Act arises in respect of additional liability created under the assessment order and not on the date of
transaction of purchase and sale or filing of return. The tax paid as per return does not carry any liability to pay interest till assessment is made.
Reliance has been placed on the judgment of honourable Supreme Court in J.K. Synthetics Limited and Birla Cement Works and another Vs.
Commercial Taxes Officer, State of Rajasthan and another,
2. As regards challenge to the tax liability u/s 9 of the Act is concerned, it is not disputed by learned, counsel for the petitioners that the matter is
covered against the petitioner by the judgment of honourable Supreme Court in Hotel Balaji and others, Vs. State of Andhra Pradesh and others,
etc. etc., . Only contention which has been pressed is about levy of interest for the period prior to the assessment. On this aspect the matter is
covered in favour of the petitioner by the judgment of the honourable Supreme Court i J.K. Synthetics Limited and Birla Cement Works and
another Vs. Commercial Taxes Officer, State of Rajasthan and another, and learned counsel for the State has not been able to distinguish the
applicability of the judgment. Accordingly, we allow these writ petition to the 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. Synthetics Limited and Birla Cement Works and another Vs. Commercial Taxes Officer, State of Rajasthan and
another,
