Postponed estate duty payment can attract interest even when liability arises from provisional assessment.

Section 70 of the Estate Duty Act, 1953 permits interest where payment of estate duty is postponed, and its operation is not confined to final assessment. The statutory scheme of provisional assessment under section 57 and regular assessment under section 58 shows that estate duty becomes due from the date of death, while section 70 authorises deferred payment on terms where immediate recovery would cause excessive sacrifice. Interest may therefore be levied on the postponed amount even when the liability arises from provisional assessment and payment is allowed later by agreement.

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Issues: Whether interest under section 70 of the Estate Duty Act, 1953, could be charged when payment of estate duty assessed provisionally was postponed on terms.

Analysis: Estate duty becomes due from the date of death, and the Act permits provisional assessment under section 57 followed by regular assessment under section 58. Section 70 authorises postponement of payment where the Controller is satisfied that the duty cannot be raised at once without excessive sacrifice, and it permits the levy of interest on the postponed amount. The wording of section 70 is not confined to final assessment; it applies whenever payment of estate duty is postponed, including where the liability arises on a provisional assessment and the accountable person seeks time for payment on agreed terms. The combined scheme of sections 57, 58 and 70 shows that the duty is recoverable and interest may be charged at the permissible rate when the postponement is granted.

Conclusion: Interest was lawfully chargeable on the postponed payment of estate duty, even though the demand arose from provisional assessment, and the challenge to the demand for interest failed.

Ratio Decidendi: Section 70 of the Estate Duty Act, 1953, authorises interest whenever payment of estate duty is postponed, and its operation is not confined to cases of final assessment.

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