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2000 (2) TMI 735 - SUPREME COURTWhether the State of Haryana is justified in demanding interest from the appellant on the tax due by it for the assessment year 1975-76? Whether there was a valid demand notice in the year 1982 (the year from which the interest is demanded) which obligated the appellant to pay the tax demanded under the said notice? Held that:- Appeal allowed. As has been noticed the demand notice of the year 1982 which was issued during the period when the State had no authority to levy sales tax cannot be said to be a valid demand, based on which interest could be claimed. A valid demand for the assessment year 1975-76 could have been made by the State of Haryana only after the judgment of this Court, i.e., from January 6, 1997, and on such a demand being made on February 20, 1997, the appellant has satisfied the said demand within the period available to it. If that be so, in our opinion, the State could not have demanded interest on the tax due for the assessment year 1975-76 based on its earlier demand notice. Thus the interest demanded by the State of Haryana on the amount due from the appellant for the assessment year 1975-76 cannot be sustained
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