Strict construction of sales tax interest provision limits interest to the actual delay period, including part months.

Section 16(3) of the Andhra Pradesh General Sales Tax Act, 1957 was construed strictly to determine how interest on delayed tax payment is computed. The phrase "for every one hundred rupees or part thereof for each month or part thereof" was read as fixing both the rate and the period of charge, so interest applies to the actual period of default, including any part of a month, rather than being rounded up to a full month. The notices demanding interest for the whole month were quashed to that extent, and the writ petitions were partly allowed.

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Issues: Whether, under section 16(3) of the Andhra Pradesh General Sales Tax Act, 1957, interest on delayed tax payment is payable only for the completed month or for the actual period of delay including part of a month.

Analysis: The provision was construed to mean that the phrase "for every one hundred rupees or part thereof for each month or part thereof" specifies the rate as well as the period for which interest is chargeable. The words "part thereof" were held to require computation of interest for the actual period of default, not by rounding up every part-month delay to a full month. As the provision creates a fiscal liability, it was given a strict construction.

Conclusion: Interest is payable only for the actual period of delay, including any part of a month, and not for the whole month demanded in the impugned notices. The notices were quashed to that extent and the writ petitions were partly allowed.

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