Statutory interest on unpaid sales tax accrues despite a stay of recovery, absent express suspension in the statute.

Interest under section 8(1-A) of the U.P. Sales Tax Act continues to accrue once tax remains unpaid within the prescribed time, and a stay of recovery in writ proceedings does not suspend that statutory liability unless the statute itself so provides. The court applied the Supreme Court's interpretation of the provision and rejected the contention that interest could not be recovered for the stay period. The ancillary argument based on refusal to accept tender was not accepted on the record. The challenge to recovery of interest therefore failed, and the writ petitions were dismissed with costs.

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Issues: Whether interest under section 8(1-A) of the U.P. Sales Tax Act was recoverable for the period during which recovery of the sales tax demand remained stayed under interim orders passed in writ proceedings.

Analysis: The liability to pay interest was held to arise by force of section 8(1-A) once the tax remained unpaid within the prescribed time. The statutory language was construed as not permitting suspension of the running of interest merely because recovery was stayed by a court order. The Court treated the question as concluded by the Supreme Court's interpretation of the provision and held that interest accrues automatically until the tax liability is discharged. The ancillary contention that the respondents had refused tender was not accepted on the material on record.

Conclusion: The petitioners were liable to pay interest for the period of stay, and the recovery of such interest was lawful.

Final Conclusion: The challenge to the recovery of interest failed, and the writ petitions were dismissed with costs.

Ratio Decidendi: Interest imposed by statute continues to accrue notwithstanding a stay of recovery unless the statute itself provides for suspension of such accrual.

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