Conditional interest relief governs tax liability where the assessee accepts the operative order for the disputed period.

A later conditional order permitting payment of interest at 9 per cent governed the disputed period under section 17A of the Rajasthan Sales Tax Act, 1951. Because the assessee accepted that order and it had already been upheld, the challenge to the higher departmental rate became unnecessary to decide. The liability therefore conformed to the operative Commissioner's order, subject to its specified conditions, and the earlier administrative basis for the demand did not require adjudication.

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Issues: Whether the assessee was liable to pay interest at the higher rate claimed by the department or at 9 per cent subject to the conditions in the Commissioner's order under section 17A of the Rajasthan Sales Tax Act, 1951.

Analysis: The assessee's challenge to the higher rate of interest stood overtaken by the Commissioner's order granting permission to pay interest at 9 per cent subject to specified conditions. That order had already been upheld, and the assessee agreed to abide by it for the period covered by the revision. In these circumstances, it was unnecessary to decide the legal effect of the State Government's earlier orders relied upon by the Tribunal.

Conclusion: The assessee was held liable to pay interest only at 9 per cent subject to the conditions in the Commissioner's order.

Final Conclusion: The revision succeeded, and the assessee obtained the benefit of the Commissioner's conditional permission to pay interest at the reduced rate for the relevant period.

Ratio Decidendi: Where a later conditional order granting limited relief on interest is accepted and governs the period in dispute, the controversy over the earlier administrative basis for the demand need not be adjudicated, and the liability must conform to the operative order.

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