Strict construction of taxing provisions bars interest on reassessment where the statute does not expressly impose it.

Interest under section 11-B of the Rajasthan Sales Tax Act was held not leviable on tax assessed in reassessment proceedings under section 12, because the original wording did not expressly cover that class of assessment. The court applied strict construction of a fiscal charging provision and held that nothing can be implied into a taxing statute to create liability. It also relied on the long-standing administrative view that interest was not chargeable in such reassessment cases, and declined to depart from that interpretation. The Tribunal's view that the interest levy could not be sustained was upheld.

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Issues: Whether interest was leviable under section 11-B of the Rajasthan Sales Tax Act, 1954 on tax assessed in reassessment proceedings under section 12 of that Act.

Analysis: The expression defining when tax liability is quantified in section 11-B did not originally include assessments under section 12. The court applied the settled rule that a fiscal statute must be construed strictly, with nothing to be read in by implication and no taxation by intendment. The explanation to section 11-B was treated as a charging provision and therefore required strict construction. The court also noted that the taxing authorities had consistently taken the view that interest was not chargeable in reassessment proceedings under section 12, and that such long-accepted interpretation should not be departed from.

Conclusion: Interest was not leviable under section 11-B on reassessment under section 12 for the assessment years in question.

Final Conclusion: The challenge to the Tribunal's view failed, and the levy of interest set aside by the Tribunal was upheld.

Ratio Decidendi: A charging provision in a fiscal statute must be construed strictly, and where the relevant provision does not expressly cover a particular class of assessment, tax or interest cannot be imposed by implication.

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