https://www.taxtmi.com/caselaws?id=155670 A statutory levy of interest may arise automatically on tax default, but if interest is omitted from the original assessment and later demanded in a way that enhances the assessed liability, rectification with notice and a reasonable opportunity of hearing is required under section 12. Later demand notices issued without that procedure are unsustainable. A rule-making authority may prescribe interest for defaults within the operative field of the rules, but it cannot confer retrospective effect unless the parent Act expressly authorises retrospectivity. Accordingly, the levy of interest was upheld in principle, while retrospective application of the amended rules and later interest demands made without rectification procedure were disallowed. en-us Fri, 26 Aug 1988 00:00:00 +0530 Fri, 06 Sep 2013 15:10:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=155670 A statutory levy of interest may arise automatically on tax default, but if interest is omitted from the original assessment and later demanded in a way that enhances the assessed liability, rectification with notice and a reasonable opportunity of hearing is required under section 12. Later demand notices issued without that procedure are unsustainable. A rule-making authority may prescribe interest for defaults within the operative field of the rules, but it cannot confer retrospective effect unless the parent Act expressly authorises retrospectivity. Accordingly, the levy of interest was upheld in principle, while retrospective application of the amended rules and later interest demands made without rectification procedure were disallowed. Case-Laws VAT and Sales Tax Fri, 26 Aug 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=155670