SALES TAX OFFICER, SECTOR I KANPUR & ANR. vs M/S. DWARIKA PRASAD SHEO KARAN DASS

The Supreme Court held that under Section 8(1A) of the U.P. Sales Tax Act, 1948, the liability to pay interest on the tax amount due is automatic and arises by operation of law, negating the need for a fresh notice of demand after a reduction in tax by appeal or revision. The Court found that the High Court's judgment, which quashed recovery proceedings on the basis that a fresh notice was required, was erroneous. Consequently, the appeal was allowed, and the High Court's order was set aside.