Interest not Leviable in Absence of Taxable due under Assam General Sales Tax Act: Gauhati HC

The Gauhati High Court ruled that interest cannot be levied under the Assam General Sales Tax Act if there is no taxable due. This decision arose from a case where the tax authority imposed interest on an alleged default in tax payment, despite the fact that no actual tax liability was established. The court highlighted that interest charges under the Act are contingent upon a confirmed taxable amount, and without a due tax, such interest charges are unjustified. The ruling clarifies that tax authorities cannot arbitrarily impose interest without establishing a valid taxable amount due.