F.C.I. vs STATE OF HARYANA — C.A. No. 979/1998

Case Summary: F.C.I. v. State of Haryana (C.A. No. 000979/1998) The Supreme Court allowed FCI's appeal, quashing Haryana's demand for interest on sales tax for assessment year 1975-76. Although the Court's January 1997 judgment authorized states to levy sales tax on levy transactions retrospectively, the Court held that interest could only be claimed on a valid demand made after that judgment. Since Haryana's 1982 demand was issued when no authority existed to levy such tax, it was invalid; only the fresh demand dated February 20, 1997 was legitimate, and FCI's timely payment satisfied it without incurring interest liability. This case analysis is maintained by casestatus.in based on publicly available court records.