Pre-assessment interest under sales tax law is not payable before assessment determines tax liability.

Interest under the sales tax statute was held chargeable only from the date of assessment where tax liability was determined by assessment after returns had been filed. Applying binding precedent on an in pari materia provision, the court held that no interest could be levied for any period before assessment. The demand for pre-assessment interest was therefore negatived, and the assessee succeeded on that issue.

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Issues: Whether interest was payable by the assessee for the period prior to the date of assessment.

Analysis: The dispute concerned levy of interest under the sales tax statute where the assessment itself determined the tax liability after the returns had been filed. The issue was held to be covered by earlier binding precedent construing an in pari materia provision, which had ruled that interest becomes payable only from the date of assessment and not for any earlier period.

Conclusion: The liability to pay interest for the period before assessment was negatived and the issue was decided in favour of the assessee.

Final Conclusion: The appeals succeeded because the interest demand could not be sustained for any period anterior to the assessment date, and the Tribunal's order was set aside.

Ratio Decidendi: Where tax liability is determined on assessment under a provision analogous to the governing sales tax interest clause, interest is chargeable only from the date of assessment and not for the period preceding it.

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