(1) A dealer who is liable to pay tax in respect of any year, and who has failed to apply for registration or has failed to apply for registration within the time as required by or under this Act, shall be liable to pay by way of simple interest, in respect of each of such years, in addition to the amount of tax payable in respect of such year, a sum calculated at the prescribed rate on the amount of such tax for each month or part thereof for the period commencing on the 1 April of the respective year to the date of the payment of tax. The amount of such interest shall be calculated by taking into consideration the amount of, and the date of, such payment, when the payment is made on different dates or in parts, or is not made. When, as a result of any order passed under this Act, the said amount of tax is reduced, the interest shall be reduced accordingly and where the said amount is enhanced, [the interest on the enhanced amount shall be calculated mutatis mutandis up to the date of such order] :
Provided that, in respect of any of such years, [the amount of interest payable] under this subsection shall not exceed the amount of tax found payable for the respective year.
(2) A registered dealer who has failed to pay the tax within the time specified by or under this Act, shall be liable to pay by way of simple interest, in addition to the amount of such tax a sum calculated at the prescribed rate on the amount of such tax for each month or part thereof after the last date by which he should have paid such tax :
Provided that, in relation to the tax payable according to [the return, fresh return or as the case may be[ revised return, the said dealer shall, notwithstanding anything contained in any other provision of this Act, be deemed not to have paid the amount of such tax within the time he is required by or under the provisions of this Act to pay it if he has not paid the full amount of such tax on or before that last date prescribed for furnishing of such return and accordingly, if he has not paid the full amount of such tax or has paid only the part of the amount of such tax by such date, he shall be liable under this clause for payment of interest after such date on the full or part, as the case may be, of the amount of tax which has not been paid by such date and where a dealer has furnished a [fresh return or revised return[ and the amount of tax payable as per [[fresh return or revised return] exceeds the amount of tax payable as per the original return, then for the purposes of this sub-section, the dealer shall be deemed to have been required to pay the excess amount of tax at the time he was required to pay the tax as per the original return and accordingly he shall be liable to pay interest under this sub-section on the said excess amount of tax.
[Provided further that, in case a dealer files an annual revised return, as provided under clause (b) or, as the case may be, clause (c) of sub-section (4) of section 20, then the interest shall be payable on the excess amount of tax, as per such annual revised return, from the dates mentioned in column (2) of the Table, till the date of payment of such excess amount of tax.
TABLE Registration status in the year for which annual revised return is filed Interest to be computed from (1) (2) (a) Dealer, holding certificate of registration for whole year. 1 st October of the year, to which the annual revised return relates. (b) Certificate of registration granted, effective from any date up to the 30th September of the year to which revi 1 st October of the year, to which the annual revised return relates. Certificate of registration cancelled, effective on any date after the 30th September of the year to which revised return relates. 1 st October of the year, to which the annual revised return relates. (d) Certificate of registration granted, effective from any date after the 30th September of the year to which revised retur effective date of registration. (e) Certificate of registration cancelled, effective on any date prior to the 30th September of the year to which revise effective date of cancellation of registration.