JUDGMENT

Ritu Bahri, J.

The revenue has come up in appeal against the order dated 03.02.2017 passed by Haryana Tax Tribunal (respondent No.2) in STA No. 293 of 2015-16 (Annexure A-4) whereby on an appeal filed by the respondent-assessee assailing order dated 30.10.2015 passed by the revisional authority Hisar creating additional demand of tax amounting to Rs.3,23,359/- and interest under Section 14 (6) of the Haryana Value Added Tax Act, 2003 (in short, the HVAT Act) has been allowed to the extent that interest on the above said demand amount is leviable from the date of order of the revisional authority and not from the date of filing of the return. Further direction has been given to the Assessing Authority to recalculate the interest on the additional demand.

2. Learned counsel for the appellant, at the outset, has referred to the order dated 30.10.2015 passed by the Deputy Excise & Taxation Commissioner-cum-Revisional Authority (Annexure A-2) wherein the order passed by the assessing authority was modified on two grounds:-

1. Income worth Rs.2,06,807/- received by the dealer from M/s. Asia Motor Works against the repair of accidental trucks is eligible to tax as no sale of parts consumed in the repair of accidental vehicle has been shown by the dealer firm nor levied by the Assessing Authority in the assessment. The tax on Rs.2,06,807/- which comes to Rs.27,143/- is now levied.

2. The warranty claim of Rs.22,56,885/- received in the shape of credit notes form the company i.e. M/s. Asia Motor Works in respect of the goods replaced during warranty claim and reduced from purchases are liable to tax and the tax levied is Rs.2,96,216/- .

3. Hence the total tax levied was Rs.3,23,359/- (1+2) was payable by the dealer alognwith quarterly returns. After making the assessment by the Revisional Authority, direction was given to the Assessing Authority to recover the tax of Rs.3,23,359/- and interest under Section 14 (6) of the HVAT Act, 2003 from the dealer within two months from the receipt of the order.

4. She has further stated that after order dated 30.10.2015 (Annexure A-2) passed by the Revisional Authority, notice dated 23.12.2015 (Annexure A-3) was given by the Assessing Authority to the respondent after calculating tax and interest as under:-

5. She has argued that this interest was calculated by the Assessing Officer under Section 14 (6) of the HVAT Act, 2003 from 01.10.2011 to 23.12.2015 i.e. 1544 days and after calculating the above said amount, notice dated 23.12.2015 was issued (Annexure A-3) to the respondent and from 23.12.2015, provisions of Section 23 of HVAT Act, 2003 for recovery of the tax due would start. As per notice dated 23.12.2015 (Annexure A-3) an amount of Rs.6,46,718/- was to be deposited within 30 days of the service of the notice and, thereafter, the respondent was liable to pay in addition to the amount due, simple interest on such amount at one-and-a-half per cent per month if the payment is made within ninety days but if the default continues thereafter, at three per cent per month for the period from the last date for the payment of the amount in time to the date the respondent makes the payment. She has referred to the order passed by the Haryana Tax Tribunal, Chandigarh in STA No. 897 of 2010-11 titled as M/s. Faridabad Fabricators (P) Ltd., Faridabad v. State of Haryana, decided on 30.01.2014, wherein the Tribunal was exa