Interest on assessed sales tax can apply to self-returned dues not paid on time under the statutory notice scheme.

Section 16(3) of the Andhra Pradesh General Sales Tax Act was treated as wide enough to levy interest when tax, assessed on the basis of the dealer's own return, was not paid within the time specified in the notice or instalment order. The provision was not confined to final assessment; it also applied where the amount due was already known and ascertainable, so there was no uncertainty preventing interest from running. The notice expressly stating that interest was payable reinforced this construction. Interest under section 16(3) was therefore held to be rightly levied.

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Issues: Whether interest under section 16(3) of the Andhra Pradesh General Sales Tax Act was leviable when the tax was demanded on the basis of the dealer's return and payment was not made within the time fixed, and whether the provision was confined only to final assessment.

Analysis: Section 16(3) imposes interest where tax assessed under the Act, or any instalment thereof, is not paid within the time specified in the notice of assessment or in the order permitting instalments. The language was held wide enough to cover not only final assessment but also a case where the dealer is directed to pay the amount within time on the basis of his own return. The amount payable was treated as known and ascertainable, so there was no uncertainty that would keep the interest provision out of operation. The notice also expressly stated that interest was payable, supporting the view that the legislative scheme contemplated such levy.

Conclusion: Interest under section 16(3) was rightly levied, and the contention that it applied only to final assessment failed.

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