https://www.taxtmi.com/caselaws?id=156861 Liability to penal interest under section 23(3) arises only when the dealer fails to pay tax in accordance with the demand notice issued by the assessing authority. Mere filing of revised returns, or failure to produce proof of payment with those returns, does not itself trigger penal interest. The controlling principle applied was that default must occur after service of the demand for tax, and the earlier view that interest follows non-compliance with the notice of demand was followed. en-us Tue, 05 Sep 1989 00:00:00 +0530 Wed, 25 Sep 2013 16:11:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=156861 Liability to penal interest under section 23(3) arises only when the dealer fails to pay tax in accordance with the demand notice issued by the assessing authority. Mere filing of revised returns, or failure to produce proof of payment with those returns, does not itself trigger penal interest. The controlling principle applied was that default must occur after service of the demand for tax, and the earlier view that interest follows non-compliance with the notice of demand was followed. Case-Laws VAT and Sales Tax Tue, 05 Sep 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=156861