1966 (10) TMI 120 - SC - VAT and Sales Tax

RECOVERY - ARREARS OF SALES TAX - LIABILITY OF CERTIFICATE-DEBTOR TO PAY INTEREST IN PROCEEDINGS IN EXECUTION OF CERTIFICATE.

Summary

The appellant, a registered dealer under the Bihar Sales Tax Act, was assessed to pay sales tax for four different periods. The arrears of taxes were public demands under the Bihar and Orissa Public Demands Recovery Act, 1914. The Certificate Officer claimed interest on the unpaid taxes, which the appellant disputed. The court held that interest is payable on the principal amount of the certificate at a specified rate and is recoverable in execution proceedings. The appellant's appeal was dismissed, with costs.