Return-based tax interest applies only to tax shown due, not later assessment additions when return liability is paid.

Interest under the Haryana General Sales Tax Act was held to arise only on tax shown as due in the return, not on additional liability later created on assessment. Where the dealer has paid the tax declared in the return, no statutory default occurs merely because the Department subsequently determines a higher tax demand. The dealer is not required to anticipate the final assessment to avoid interest. Accordingly, interest was not leviable on the assessed addition, and the issue was decided in favour of the assessee.

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Issues: Whether interest levied and charged under section 25(5) of the Haryana General Sales Tax Act, 1973 was legally payable on the additional demand created by the Department.

Analysis: The question was covered by the principle that interest under section 25 is attracted only on the amount of tax payable on the basis of the return. Where the dealer pays the tax shown as due in the return, there is no statutory default merely because a higher liability is later determined on assessment. The dealer is not required to anticipate the final assessment and pay tax on that basis to avoid interest.

Conclusion: Interest was not leviable on the additional demand, and the question was answered in favour of the assessee and against the Revenue.

Ratio Decidendi: Interest under the Haryana General Sales Tax regime is chargeable only on tax shown as due in the return and not on later assessed additions when the dealer has complied with the return-based tax obligation.

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