Interest on assessed tax cannot be levied before return filing under the Delhi Sales Tax statutory scheme.

Interest under section 27(1) of the Delhi Sales Tax Act was held not leviable where no return had been filed and tax was later determined only on assessment. The court read section 21(3) and section 27(1) together and held that "tax due" in section 27(1) means tax due according to a return, not tax first quantified on assessment. Non-filing of returns may attract other statutory consequences, but not interest under that provision before assessment. The order directing payment of interest was set aside, and consequential relief followed.

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Issues: Whether interest under section 27(1) of the Delhi Sales Tax Act, 1975 could be levied when no return was filed and the tax was later determined only on assessment.

Analysis: Section 21(3) links the obligation to pay tax with the filing of a return, and section 27(1) applies only when a dealer fails to pay the tax due as required by that provision. Reading the statutory scheme as a whole, the expression "tax due" in section 27(1) refers to tax due according to a return, and not to tax later determined on assessment where no return was filed. The Court relied on the principle that interest provisions of this nature must be construed as substantive provisions and held that non-filing of returns may attract other statutory consequences, but not interest under section 27(1) before assessment.

Conclusion: Interest under section 27(1) was not leviable against the assessee for the period when no return had been filed. The impugned order directing payment of such interest was set aside, and consequential relief was granted.

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