Remission of interest on belated tax payment may be considered where statute empowers government relief and bona fides are shown.

Interest on belated payment of sales tax may be remitted only where the governing statute confers that power, and a bona fide request for remission can be directed to be considered by the Government. The text notes that liability to interest was not disputed, but for a smaller CST-related demand the taxpayer undertook to pay within the time granted, failing which the earlier order would revive. For the larger TNGST-related demand, the Court referred to the Government's power under Section 31 of the Tamil Nadu Value Added Tax Act, 2006 to remit tax, penalty, interest or fee by notification, and required partial payment of the interest as a condition for considering remission.

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Issues: Whether interest on belated payment of tax under the sales tax enactments could be waived or remitted and whether the petitioner's representation for remission deserved consideration by the Government.

Analysis: The liability to pay interest for delay in payment of tax was not disputed. For the smaller CST-related demand, the petitioner undertook to pay the interest amount within the time granted, failing which the impugned order would revive. For the larger TNGST-related demand, the Court noticed the statutory power under Section 31 of the Tamil Nadu Value Added Tax Act, 2006 to remit the whole or any part of tax, penalty, interest or fee by notification in appropriate circumstances. In view of the petitioner's claim of similar relief having been granted to similarly placed persons, the Court directed the Government to consider the remission request, but made such consideration conditional on payment of a substantial part of the interest demand to show bona fides.

Conclusion: The petitioner was granted conditional relief. The smaller interest demand was left to be satisfied by the petitioner's undertaking, and the larger interest demand was kept open for governmental consideration of remission after partial payment.

Ratio Decidendi: Where the statute confers power on the Government to remit interest, a bona fide representation for remission may be directed to be considered, and the Court may impose a reasonable condition to secure compliance before such consideration.

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