2001 (2) TMI 1009 - HC - VAT and Sales Tax

Summary

The Rajasthan High Court upheld the validity of Section 11B of the Rajasthan Sales Tax Act, allowing for the levy of interest on outstanding tax demands. The court ruled that interest is to compensate for the use of someone else's money and is not a penalty. The petition challenging the levy of interest on demands prior to the insertion of Section 11B was dismissed. The court also held that interest could be levied on tax under the Central Sales Tax Act retrospectively, following a Supreme Court decision. The petition was dismissed.