Retrospective tax levy and interest: no interest chargeable when liability arises only from a backdated notification.

Interest was not chargeable under Section 11B(1)(f) of the Rajasthan Sales Tax Act, 1954 where the tax liability arose only because of a retrospective notification. The Court accepted the Tax Board's view that earlier decisions had already held that interest could not be imposed in such circumstances, and no contrary authority from the Court or the Supreme Court was shown. The revenue's relied-upon decision did not address the specific question of interest on tax becoming payable only by retrospective levy. The assessee therefore succeeded on the issue of interest.

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Issues: Whether interest was chargeable under Section 11B(1)(f) of the Rajasthan Sales Tax Act, 1954 on tax liability arising from a retrospective levy.

Analysis: The revision challenged only the deletion of interest by the Tax Board. The Court noted that the assessee's liability to pay tax arose because of a notification having retrospective effect, and that the Board had followed earlier decisions holding that interest could not be levied in such a situation. No contrary authority of the Court or the Supreme Court was shown. The decision relied upon by the revenue did not decide the precise question whether interest was payable under Section 11B(1)(f) when the tax itself became payable because of a retrospective notification.

Conclusion: Interest was not chargeable on the tax liability arising from the retrospective levy, and the assessee succeeded on this issue.

Ratio Decidendi: Where tax liability arises only because of a retrospective levy, interest cannot be levied under Section 11B(1)(f) in the absence of a clear contrary legal position.

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