1997 (7) TMI 566 - SC - VAT and Sales Tax

Whether Section 9(2) of the Central Act did not visualise any payment of interest?

Held that:- Appeal allowed. Section 9(2-A) makes applicable to the assessment, reassessment, collection and enforcement of Central sales tax the provisions relating to offences and penalties contained in the State Acts as if the Central sales tax was a State sales tax. But section 9(2-A) makes no reference to interest.

There is no substantive provision in the Central Act requiring the payment of interest on Central sales tax. There is, therefore, no substantive provision in the Central Act which obliges the assessee to pay interest on delayed payments of Central sales tax. Thus requirement of the 1st respondent's sales tax authorities that the appellants should pay interest at the rate of 24 per cent per annum on delayed payments of Central sales tax under the provisions of section 35-A of the State Act must, therefore, be held to be bad in law.