Interest on disclosed turnover tax runs from the original due date, not the assessment order, under the Trade Tax Act.

Interest on tax attributable to disclosed turnover was treated as payable under section 8(1) of the U.P. Trade Tax Act, 1948 from the date the tax became due, because the turnover had been shown in the assessee's accounts and its taxability was ultimately upheld. A liability that was initially disputed does not cease to be "tax admittedly payable" once taxability is finally affirmed. Section 8(1B) applies only to tax outside section 8(1), so it does not govern interest on tax found payable on disclosed turnover; the interest consequence therefore runs from the original due date, not from the assessment order or demand notice.

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Issues: Whether interest on the tax payable on the disclosed turnover was chargeable under section 8(1) of the U.P. Trade Tax Act, 1948 from the date the tax became due, or under section 8(1B) of that Act from the date of the assessment order and demand notice.

Analysis: The turnover in question had been disclosed in the assessee's accounts, and once the taxability of that turnover was upheld, the amount fell within the expression "tax admittedly payable" in the Explanation to section 8(1). The Court held that a disputed liability does not cease to be tax admittedly payable once the taxability is finally affirmed. Section 8(1B) applies only to tax other than that referred to in section 8(1), and therefore does not govern a case where the tax is found payable on the turnover disclosed in the accounts. The interest consequence therefore follows from the original due date and not from the date of the assessment order.

Conclusion: Interest was payable under section 8(1) of the U.P. Trade Tax Act, 1948 and not under section 8(1B); the assessee's challenge failed.

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