https://www.taxtmi.com/caselaws?id=273414 Interest under Section 24(3) of the Tamil Nadu General Sales Tax Act, 1959 is not leviable on differential tax where the dealer's liability remained disputed and the tax was paid only after the assessment issue was finally determined. The applicable principle is that statutory interest arises only when the tax liability has crystallised or where admitted returns have already fixed the liability and default follows thereafter. On the facts stated, the dealer had claimed exemption, the controversy on the mode of taxation was resolved later, and the revenue could not rely on Section 13 to sustain interest. The interest demand was therefore unsustainable and the levy was set aside. en-us Wed, 10 Aug 2016 00:00:00 +0530 Sun, 24 Jun 2018 21:17:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=273414 Interest under Section 24(3) of the Tamil Nadu General Sales Tax Act, 1959 is not leviable on differential tax where the dealer's liability remained disputed and the tax was paid only after the assessment issue was finally determined. The applicable principle is that statutory interest arises only when the tax liability has crystallised or where admitted returns have already fixed the liability and default follows thereafter. On the facts stated, the dealer had claimed exemption, the controversy on the mode of taxation was resolved later, and the revenue could not rely on Section 13 to sustain interest. The interest demand was therefore unsustainable and the levy was set aside. Case-Laws VAT and Sales Tax Wed, 10 Aug 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=273414