Interest on assessed tax and delayed declaration forms under trade tax law referred to Full Bench for authoritative resolution.

Under the U.P. Trade Tax Act, 1948, the question is whether tax computed at the normal rate becomes "admittedly payable" for interest purposes when declaration forms supporting exemption or concessional treatment are not furnished during assessment, and whether interest under section 8(1) runs from the return stage or only after assessment. The discussion also considers whether legitimate expectation, bona fide belief, or a hope of later obtaining the forms affects interest liability. Noting conflicting judicial views on these issues, the matter was referred to a Full Bench for authoritative determination.

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Issues: Whether, on non-furnishing of the requisite declaration forms during assessment proceedings, tax assessed at the normal rate could be treated as tax admittedly payable for the purpose of interest under section 8(1) of the Act, and whether interest was chargeable from the return stage or only after assessment; whether the concepts of legitimate expectation, bona fide belief, or hope to obtain the forms had any bearing on liability to interest.

Analysis: The order surveys the scheme of sections 7 and 8 of the U.P. Trade Tax Act, 1948 and the relevant rules governing filing of returns, deposit of admitted tax, and production of declaration forms up to the assessment stage. It also notices conflicting judicial views on whether, where exemption or concessional tax is claimed but the supporting form is not furnished, the resultant tax at the normal rate can be said to have been admitted in the return so as to attract interest under section 8(1). In view of the divergence in authority, the matter is considered fit for authoritative resolution by a Full Bench.

Outcome: The questions were referred for consideration by a Full Bench.

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