Charging interest on tax arrears needs a substantive statutory basis; an interim staged-payment order is not a statutory instalment order.

Interest on delayed Central Sales Tax dues cannot be levied by importing the State sales tax interest provisions through sections 9(2) and 9(2-A) of the Central Sales Tax Act unless the Central statute itself provides a substantive charging basis. By contrast, an interim writ order allowing payment in two stages was treated as an ad hoc arrangement to lift attachment and continue business, not as a statutory instalment order under the Andhra Pradesh General Sales Tax Act. Accordingly, interest on the Central Sales Tax demand was not leviable on that basis, while interest under the State sales tax law was upheld.

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Issues: (i) Whether interest on delayed payment of Central Sales Tax dues could be levied by importing the interest provisions of the local sales tax law through section 9(2) and section 9(2-A) of the Central Sales Tax Act, 1956. (ii) Whether an interim order passed in a writ petition permitting payment in two stages amounted to an order for payment of tax by instalments so as to attract interest under section 16 of the Andhra Pradesh General Sales Tax Act, 1957.

Issue (i): Whether interest on delayed payment of Central Sales Tax dues could be levied by importing the interest provisions of the local sales tax law through section 9(2) and section 9(2-A) of the Central Sales Tax Act, 1956.

Analysis: The liability to pay interest must rest on a substantive provision in the Central Sales Tax Act itself. In the absence of such a provision, the interest provisions of the local sales tax law cannot be imported merely by invoking section 9(2) and section 9(2-A) of the Central Sales Tax Act, 1956.

Conclusion: Interest on delayed payment of Central Sales Tax dues was not leviable on that basis, and the assessee succeeded on this issue.

Issue (ii): Whether an interim order passed in a writ petition permitting payment in two stages amounted to an order for payment of tax by instalments so as to attract interest under section 16 of the Andhra Pradesh General Sales Tax Act, 1957.

Analysis: The interim order was only an ad hoc measure to lift attachment and enable the assessee to continue business. It was neither an order made under the Act nor an order permitting payment by instalments. The Tribunal had also confined interest to the balance amount after giving adjustment for amounts refundable under the Supreme Court's order.

Conclusion: The levy of interest under section 16 of the Andhra Pradesh General Sales Tax Act, 1957 was upheld, and the assessee failed on this issue.

Final Conclusion: The revisions were allowed to the extent of the Central Sales Tax interest question, while the challenge to interest under the State sales tax law was rejected.

Ratio Decidendi: Interest on delayed tax payment cannot be levied in the absence of a substantive charging provision, and an interim court arrangement for staged payment does not amount to a statutory instalment order.

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