Recovery of sales tax interest need not await a separate demand notice, and payments may be adjusted against earlier certified dues.

Arrears of sales tax and statutory interest were recoverable under the governing Act without any separate prior assessment or demand notice for interest, so the objection based on absence of a specific demand failed. Where recovery certificates covered earlier outstanding dues, the recovery authorities were entitled to appropriate payments towards those recoverable arrears, and the debtor could not unilaterally earmark the payment for one demand to defeat adjustment against other outstanding liabilities. The writ petition disclosed no ground for interference, and the recovery proceedings were sustained.

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Issues: (i) whether recovery of interest on arrears of sales tax required a prior assessment or demand notice; (ii) whether the amount paid by the petitioner could be confined to a particular demand so as to adjustment towards earlier recoverable dues.

Issue (i): whether recovery of interest on arrears of sales tax required a prior assessment or demand notice.

Analysis: The Court relied on the settled position that the statutory scheme did not require a separate assessment of interest or the issue of a demand notice before recovery of interest on sales tax arrears. The claim that interest could not be recovered for want of a specific demand was therefore unsustainable.

Conclusion: The objection to recovery of interest without a separate demand notice was rejected, and the matter was decided against the petitioner.

Issue (ii): whether the amount paid by the petitioner could be confined to a particular demand so as to prevent adjustment towards earlier recoverable dues.

Analysis: The recovery authorities had certificates for prior years' dues and were entitled to appropriate the realisations towards the amounts covered by those certificates. The petitioner could not unilaterally earmark the payment against one demand when other recoverable arrears were outstanding in any event.

Conclusion: The adjustment of the payment towards earlier dues was upheld, and the contention was rejected against the petitioner.

Final Conclusion: The writ petition was found to disclose no ground for interference, and the recovery proceedings were sustained.

Ratio Decidendi: Where arrears of sales tax and statutory interest are recoverable under the governing Act, a separate prior assessment or demand notice for interest is not , and payments made by the debtor may be appropriated towards outstanding recoverable dues covered by recovery certificates.

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