Statutory interest survives a stay of recovery when the tax law does not expressly suspend it.

A stay of recovery of a tax demand does not suspend statutory interest liability unless the Act expressly so provides. The court noted that the stay merely postponed recovery of the assessed tax and gave no immunity from interest under section 18(3) of the General Sales Tax Act. The liability to pay interest remained independent of pending writ proceedings, and the authority had no discretion to waive it on the ground that recovery was stayed. Accordingly, interest remained recoverable despite the stay order, and the challenge to the levy of interest failed.

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Issues: Whether interest under section 18(3) of the General Sales Tax Act could be recovered despite a stay order restraining recovery of the tax demand.

Analysis: The stay order only postponed recovery of the assessment amount and did not confer immunity from statutory interest. A litigant who secures a stay against payment of revenue proceeds at his own risk and remains liable for the consequences created by the statute if the challenge fails. The statutory liability to pay interest is independent of the pendency of writ proceedings, and there is nothing in the Act to indicate that interest stops running because recovery is stayed. The decision of the Supreme Court relied upon supported the same principle that the sales tax authority has no discretion to waive statutory interest merely because recovery was stayed.

Conclusion: Interest under section 18(3) was recoverable notwithstanding the stay order, and the contention against levy of interest failed.

Ratio Decidendi: A stay of recovery does not suspend a statutory liability to pay interest unless the statute expressly so provides.

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