Penal interest on delayed central sales tax payment upheld, with state recovery machinery available for collection.

Penal interest on delayed payment of central sales tax was treated as recoverable where the tax had already been assessed and paid late. The analysis applied the principle that interest on overdue tax remains exigible under the Central Sales Tax Act, and that the recovery machinery under the Tamil Nadu General Sales Tax Act can be used to collect it. On the stated facts, the delay did not remove the statutory liability to pay interest on the outstanding tax dues, and the levy and recovery were upheld.

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Issues: Whether penal interest on delayed payment of central sales tax for the assessment year 1977-78 could be levied under section 9(2) of the Central Sales Tax Act, 1956 and recovered under section 24(3) of the Tamil Nadu General Sales Tax Act, 1959.

Analysis: The demand notice related to delayed payment of central sales tax already assessed and paid. Reliance was placed on the principle that interest for delayed tax payment is exigible under the Central Sales Tax Act and that the recovery machinery under the State sales tax law is available for collection. On the facts, the delay in payment did not displace the statutory liability to pay interest on the outstanding tax dues.

Conclusion: The levy and recovery of penal interest were upheld and the writ relief was refused.

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