CHARGING OF INTEREST UNDER THE DVAT ICST ACTS.

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....le to pay tax as per the time limit prescribed under Section 3(4) of the Act. Section 3(4) "the net tax of a dealer shall be paid within twenty-one days of the conclusion of the dealer's tax period." Section 42(2) of the Act makes a dealer liable to pay interest from the date of default in making the payment of due tax, penalty ete. Section 42(2) "When a person is in default in maki....

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....x for the tax period was due". These two sections of the Act are to be read with Rule 36( 3) and (4) of the Delhi Value Added Tax Rules, 2005 which prescribe the period for calculation of interest as from the date of such default and that interest shall be included in the DVAT 24 which is the notice of the assessment. Rule 36(3) "The Commissioner shall, at the time of making an assessment....

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....d assessment and collection of interest for delayed payment of tax, of the general sales tax laws of each State, shall apply ]" The Kerala High Court in the case Terumo Penpol Ltd. (2011)42VST147(Ker) dated 11.10.2010 and Allahabad High Court in the-: case of Control Switch Gears Company Ltd. (2011) 10 VSTI 18 (All), dated 14.07.2010 have adjudicated the issue of chargeability of interest for n....