https://www.taxtmi.com/caselaws?id=157343 Penal interest under section 23(3) of the Kerala General Sales Tax Act cannot accrue while the original tax demand is not legally subsisting because an appellate order has set it aside. The liability to interest is tied to default in payment of tax lawfully due on a live demand, and the statutory scheme contemplates cancellation or reduction of interest where the underlying tax liability is cancelled or reduced in appeal or revision. Accordingly, no penal interest was leviable for the period during which the appellate order remained operative, even though the demand was later restored in revision. en-us Tue, 24 May 1994 00:00:00 +0530 Fri, 04 Oct 2013 14:02:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=157343 Penal interest under section 23(3) of the Kerala General Sales Tax Act cannot accrue while the original tax demand is not legally subsisting because an appellate order has set it aside. The liability to interest is tied to default in payment of tax lawfully due on a live demand, and the statutory scheme contemplates cancellation or reduction of interest where the underlying tax liability is cancelled or reduced in appeal or revision. Accordingly, no penal interest was leviable for the period during which the appellate order remained operative, even though the demand was later restored in revision. Case-Laws VAT and Sales Tax Tue, 24 May 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=157343