Shimla, Nov 15 (FN Agency) Himachal Pradesh High Court has directed Punjab Roadways to pay the outstanding interest owed to the Himachal Pradesh government for delayed payment of passenger tax and surcharge. A division bench led by Acting Chief Justice Tarlok Singh Chauhan and Justice Satyen Vaidya noted in a recent order that Punjab Roadways had not only failed to deposit tax on time but had also disputed the imposition of interest on the amount due, depriving Himachal Pradesh of its rightful revenue. The case arose from a writ petition filed by Punjab Roadways contesting an interest charge of Rs.18,31,446 under the Himachal Pradesh Passenger and Goods Taxation Act, 1955. While Punjab Roadways acknowledged depositing Rs.83,25,082 in passenger tax and surcharge with the Himachal Pradesh government, it argued against the interest payment. According to Punjab Roadways, it had mistakenly filed the tax in Gurdaspur, Punjab, claiming this was due to “sheer inadvertence and under bona fide mistake.”
However, the Himachal Pradesh government contended that Punjab Roadways’ argument was baseless, citing Section 12A of the Himachal Pradesh Passenger and Goods Taxation Act, which mandates the payment of interest on delayed tax submissions. The government argued that the petitioner’s own negligence led to the delayed payment and that Punjab Roadways should be responsible for the interest accrued. Agreeing with this view, the High Court bench observed that instead of contesting the orders from Himachal Pradesh, Punjab Roadways should have sought a refund from Punjab tax authorities for the mistakenly paid tax. The court highlighted that if Punjab Roadways felt it had paid tax by mistake, it could have applied for a refund under principles of “unjust enrichment” and justice.
However, the undisputed tax liability and corresponding interest demanded by Himachal Pradesh were validly enforced. The High Court ruled that Punjab Roadways could not evade the interest payment and must compensate the state for the delayed tax, as the authorities were deprived of funds they were legitimately entitled to use. The court thereby directed Punjab Roadways to settle the outstanding interest without further dispute. The case, titled “General Manager, Punjab Roadways Pathankot vs. Excise & Taxation Commissioner-cum-Revisional Authority and ors.”, saw representation by Advocate Vinod Chauhan for Punjab Roadways and Advocate General Anup Rattan with Additional Advocate General Sushant Kaprete for the Himachal Pradesh government.