Interest on delayed Central sales tax remains payable despite late C form production and delay reasons

Delayed payment of Central sales tax attracted interest because Section 9(2B) of the Central Sales Tax Act, 1956 incorporates the State law provisions on due date, rate, assessment and collection of interest. The concessional rate claimed in monthly returns remained contingent on later production of C forms, and failure to produce them in time made the differential tax payable. The cause of delay did not matter: interest was payable irrespective of whether the default resulted from delayed C form production or any other reason. The revisional order restoring the levy was therefore valid, and the levy of interest for delayed payment stood affirmed.

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Issues: Whether interest was payable on belated payment of Central sales tax notwithstanding delayed production of C forms and whether the revisional order restoring interest was justified.

Analysis: The concessional rate claimed in the monthly returns was subject to later production of C forms, failing which the differential tax became payable. Section 9(2B) of the Central Sales Tax Act, 1956 makes the dealer liable to interest on tax not paid in time and applies the State law provisions governing due date, rate, assessment and collection of interest. In view of the statutory scheme and the binding Full Bench and Division Bench decisions referred to, the delay in payment of tax attracted interest irrespective of the cause of delay. The decisions relied on by the appellant were held to be inapplicable.

Conclusion: Interest on belated payment of Central sales tax was rightly levied, and the order restoring the levy was valid.

Final Conclusion: The appeal failed and the levy of interest for delayed payment of Central sales tax stood affirmed.

Ratio Decidendi: Where the statute expressly provides that delayed payment of Central sales tax carries interest and incorporates the State law for assessment and collection of such interest, liability arises irrespective of the reason for the delay, including non-production of C forms within time.

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