Monthly Central sales tax payment rules apply through State machinery, and delayed payment triggers automatic interest.

State sales tax payment machinery applies to Central sales tax under section 9(2) of the Central Sales Tax Act, 1956, so a dealer crossing the prescribed threshold must make monthly payments under rule 31(1A) of the Gujarat Sales Tax Rules, 1970, and delay attracts interest under section 47(4A) of the Gujarat Sales Tax Act, 1969. Interest on unpaid tax is automatic once the due date expires; no separate notice, hearing, or proof of sufficient cause is required, and no equitable waiver or remission is available. The Tribunal may correct computation, but it cannot enhance interest beyond the scope of the Revenue's challenge.

---

---

Issues: (i) Whether a dealer liable under the Central Sales Tax Act was required to make monthly payment of Central sales tax in accordance with rule 31(1A) of the Gujarat Sales Tax Rules, 1970, and whether delay attracted interest under section 47(4A) of the Gujarat Sales Tax Act, 1969 read with section 9(2) of the Central Sales Tax Act, 1956; (ii) whether the levy of interest required prior notice, observance of natural justice, or a discretionary power to waive or remit interest; (iii) whether the Tribunal could enhance the interest while directing re-computation.

Issue (i): Whether a dealer liable under the Central Sales Tax Act was required to make monthly payment of Central sales tax in accordance with rule 31(1A) of the Gujarat Sales Tax Rules, 1970, and whether delay attracted interest under section 47(4A) of the Gujarat Sales Tax Act, 1969 read with section 9(2) of the Central Sales Tax Act, 1956.

Analysis: Section 9(2) of the Central Sales Tax Act, 1956 makes the State machinery and the provisions of the general sales tax law of the State applicable for assessment, collection, enforcement of payment, returns, advance payment and interest. Section 47(1) of the Gujarat Sales Tax Act, 1969 requires tax to be paid at such intervals as may be prescribed, and rule 31(1A) of the Gujarat Sales Tax Rules, 1970 specifically requires dealers crossing the prescribed turnover threshold to make monthly payments for the first two months of each quarter. Rule 5(1) of the Central Sales Tax (Gujarat) Rules, 1970 governs filing of quarterly returns but does not regulate the time or mode of tax payment. On that scheme, the monthly payment obligation under the State rules applies to Central sales tax as well.

Conclusion: The dealer was required to make monthly payment of Central sales tax, and failure to do so attracted interest under section 47(4A) read with section 9(2).

Issue (ii): Whether the levy of interest required prior notice, observance of natural justice, or a discretionary power to waive or remit interest.

Analysis: Interest on unpaid sales tax was treated as automatic once the prescribed time for payment expired. The amount, period and rate of interest were all ascertainable from the statute and rules, so no separate notice or inquiry into sufficient cause was necessary. The Court therefore accepted that the levy followed by operation of law and that the authority had no discretion to avoid interest on equitable grounds.

Conclusion: The levy of interest did not require prior notice or a hearing on cause, and no discretion to waive or remit interest was available.

Issue (iii): Whether the Tribunal could enhance the interest while directing re-computation.

Analysis: The Tribunal could direct correction of the calculation, but it could not enhance the burden in the absence of any challenge by the Revenue. The Sales Tax Officer's computation on the basis of the quarterly return was upheld for the relevant period, and the Tribunal could not substitute a higher hypothetical figure for the months in question.

Conclusion: The Tribunal's direction resulting in enhancement of interest was impermissible, and the assessee succeeded on this issue.

Final Conclusion: The reference was answered mostly in favour of the Revenue on liability to pay monthly tax and interest, but the assessee succeeded on the limited question of impermissible enhancement of interest for the specified months.

Ratio Decidendi: Where the State sales tax law prescribes the time and mode of payment, that machinery applies to Central sales tax under section 9(2) of the Central Sales Tax Act, 1956, and interest for delayed payment accrues automatically by operation of law without a separate notice or discretionary remission, though enhancement of interest beyond the subject matter of the Revenue's challenge is not permissible.

---