Court rules interest under U.P. Trade Tax Act from due date if forms not furnished. Legitimate expectation doesn't affect tax liability.

The court held that interest under Section 8(1) of the U.P. Trade Tax Act is leviable from the due date of the return if requisite forms are not furnished during assessment or appeal, and tax at the normal rate remains unpaid. Tax assessed at the normal rate due to non-furnishing of forms is deemed "tax admittedly payable." Legitimate expectation or bona fide belief cannot impact tax liability under Section 8(1). The case was referred to the appropriate Bench for further proceedings.

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Issues Involved:
1. Charge of interest under Section 8(1) of the U.P. Trade Tax Act, 1948.
2. Non-furnishing of requisite forms and its impact on tax liability.
3. Scope for legitimate expectation or bona fide belief under Section 8(1) of the Act.

Issue-wise Detailed Analysis:

1. Charge of Interest under Section 8(1) of the U.P. Trade Tax Act, 1948:
The learned single judge observed divergent views among judges regarding the charge of interest under Section 8(1) of the Act. The primary question was whether interest could be demanded from the due date of the return in which turnover was disclosed and exemption/concession claimed, or from the date of the assessment order. The court concluded that interest under Section 8(1) is leviable from the due date of the return if the tax at the normal rate was not paid due to non-furnishing of requisite forms, aligning with the decision in J.K. Synthetics Ltd. v. Commercial Taxes Officer [1994] 94 STC 422 and other apex court rulings.

2. Non-furnishing of Requisite Forms and Its Impact on Tax Liability:
The court examined whether tax assessed at a normal rate due to non-furnishing of requisite forms could be considered "tax admittedly payable" under Section 8(1). It was determined that if the dealer fails to furnish declaration forms up to the time of assessment or in appeal, the tax payable at the normal rate becomes the admitted tax. This aligns with the Division Bench decision in Annapurna Biscuit Manufacturing Co. v. State of Uttar Pradesh [1982] 50 STC 56, which held that liability to pay interest is not affected by the deposit of tax assessed within the specified time.

3. Scope for Legitimate Expectation or Bona Fide Belief under Section 8(1) of the Act:
The court evaluated whether legitimate expectation, hope, or bona fide belief could influence the determination of tax liability under Section 8(1). It concluded that there is no scope for such considerations in avoiding the liability of payment of interest. The liability to pay interest starts from the last date of filing the return if the tax at the normal rate is not paid due to non-furnishing of requisite forms.

Conclusion:
1. Interest under Section 8(1) is leviable from the due date of the return if the requisite forms are not furnished during assessment or appeal, and tax at the normal rate has not been paid.
2. Tax assessed at the normal rate due to non-furnishing of requisite forms is considered "tax admittedly payable" under Section 8(1).
3. There is no scope for considering legitimate expectation, hope, or bona fide belief under Section 8(1), and the determination of tax liability is based on the date for filing the return.

The matter was directed to be placed before the appropriate Bench for further proceedings.

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