Conditional extension of return-filing time can lawfully carry interest for delayed tax payment under sales tax law.

An extension of time for filing sales tax returns may lawfully be made conditional on payment of interest, because the return-filing requirement and the interest provision operate together where tax is not paid as required before filing. A general extension without conditions may also extend the time for tax deposit, but that principle does not apply when the Assessing Authority expressly attaches an interest condition. As no provision in the Act or Rules prohibited such a condition, a dealer accepting the extension had to accept it as granted. Interest was therefore recoverable for the extended period, and the reference was answered in favour of the Revenue.

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Issues: Whether, where an extension of time for filing returns under the sales tax law was granted subject to payment of interest, interest could validly be charged for the extended period.

Analysis: The return-filing provision required tax due under the returns to be paid before the returns were furnished, and the interest provision fastened liability where the dealer failed to pay tax as required. A mere extension of time, if granted without conditions, could carry with it an extension of the time for deposit of tax, but that principle did not apply where the Assessing Authority expressly made the extension conditional on payment of interest. No provision in the Act or the Rules barred such a condition, and a dealer accepting the conditional extension had to accept it as a whole.

Conclusion: Interest was rightly charged and the answer to the reference was in the affirmative, in favour of the Revenue and against the assessee.

Ratio Decidendi: Where an authority is empowered to extend time for filing a return and grants that extension subject to payment of interest, the condition is lawful and interest becomes recoverable under the statute for the extended period.

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