Interest on disputed trade tax after rejection of Form III-D raised for legal scrutiny and interim stay granted

Tax treated as payable after rejection of Form III-D on technical grounds was questioned for the purpose of computing interest under the Explanation to section 8(1) of the U.P. Trade Tax Act. The HC admitted the revision on that question of law, granted time for counter affidavit and rejoinder, and ordered that the matter be listed after expiry of the filing period. Recovery under the impugned order was stayed until the next date of listing.

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Issues: Whether tax imposed by rejecting Form III-D on technical grounds can be treated as tax admittedly payable by a dealer for the purpose of computation of interest under the Explanation to sub-section (1) of Section 8 of the U.P. Trade Tax Act.

Outcome: The revision was admitted on the stated question of law, time was granted for counter affidavit and rejoinder, the matter was directed to be listed after expiry of the period, and recovery pursuant to the impugned order was stayed till the next date of listing.

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