Automatic interest on unpaid sales tax upheld where dealer used an outdated rate and no separate order was needed.

Interest under section 8(1) of the U.P. Sales Tax Act, 1948 is payable automatically when tax admittedly due under the return is not deposited within time, and the levy does not depend on a separate assessment order. A dealer who computed tax at an inapplicable, outdated rate despite the revised statutory rate remained liable for interest because there was no real dispute on classification or rate. Absence of mala fides could not defeat the statutory levy. The High Court's deletion of interest was therefore unjustified, and the levy was upheld in favour of the Revenue.

---

---

Issues: Whether interest under section 8(1) of the U.P. Sales Tax Act, 1948 was leviable when the dealer computed tax at an inapplicable rate and whether absence of mala fides could defeat the levy.

Analysis: Section 8(1) makes interest payable automatically if the tax admittedly payable is not deposited within the prescribed time. The expression covers tax payable under the Act as disclosed in the dealer's return, and the levy does not depend on a separate order. The dealer had applied an outdated rate despite the statutory revision, and there was no real dispute about classification or rate. The requirement of mala fides had no place in the application of the provision.

Conclusion: Interest under section 8(1) was rightly attracted, and the deletion of interest by the High Court was unjustified. The levy was upheld in favour of the Revenue.

---