https://www.taxtmi.com/caselaws?id=160833 Penal interest under section 23(3) of the Kerala General Sales Tax Act, 1963 is compensatory and can be levied only with reference to the tax legally payable under the demand actually in force. When an appellate order reduces or sets aside the assessment, the original demand ceases to operate to the extent of the relief granted, so interest must be limited accordingly under section 23(5); where a later appellate order restores the original assessment, interest becomes chargeable again on the restored balance until payment. The impugned demand was unsustainable as framed because the interest had to be recalculated period-wise by reference to the operative demand. en-us Wed, 27 Jun 2001 00:00:00 +0530 Wed, 25 Dec 2013 14:18:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=160833 Penal interest under section 23(3) of the Kerala General Sales Tax Act, 1963 is compensatory and can be levied only with reference to the tax legally payable under the demand actually in force. When an appellate order reduces or sets aside the assessment, the original demand ceases to operate to the extent of the relief granted, so interest must be limited accordingly under section 23(5); where a later appellate order restores the original assessment, interest becomes chargeable again on the restored balance until payment. The impugned demand was unsustainable as framed because the interest had to be recalculated period-wise by reference to the operative demand. Case-Laws VAT and Sales Tax Wed, 27 Jun 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=160833