Interest computation disputes under VAT law require disclosure of the calculation and a hearing before final demand is fixed.

Where interest is proposed under Section 42(3) of the Tamil Nadu Value Added Tax Act, 2006 and the taxpayer disputes the computation, the authority must first furnish the interest calculation, allow the taxpayer to pay or raise objections, and then decide those objections after hearing the taxpayer. The petitioner's liability to tax for the relevant month was not in dispute, but its request for consideration of interest on available credit was left for the authority to examine. The writ petition was disposed of with directions for reconsideration and no final adjudication on the merits.

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Issues: Computation of interest under Section 42(3) of the Tamil Nadu Value Added Tax Act, 2006 and consideration of the petitioner's objection and request for interest on available credit.

Analysis: The petitioner's liability to pay tax for the relevant month was not in dispute. The controversy related to the computation of interest and the petitioner's request that its claim regarding interest on the available credit be considered. The Court directed that the interest computation be furnished, permitted the petitioner to either pay the interest or raise objections, and required the authority to pass orders on the objections after hearing the petitioner.

Conclusion: The writ petition was disposed of with directions for furnishing the interest computation and for consideration of the petitioner's objections by the authority.

Final Conclusion: The dispute was not finally adjudicated on merits and was left to be processed and decided by the authority in accordance with the directions issued.

Ratio Decidendi: Where interest is proposed to be levied and the taxpayer disputes the computation, the authority must furnish the computation, hear the taxpayer, and decide the objections before finalising the demand.

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