(1) Where any person or a dealer commits a default in making the payment of any amount of –
(a) tax leviable or payable; or
(b) any amount of tax, fee, penalty or interest assessed or determined; or
(c) any other amount payable by him, within the specified time under the provisions of this Act or the rules made or notifications issued thereunder, he shall be liable to pay interest on such amount at such rate, as may be notified by the State Government from time to time, for the period commencing from the day immediately succeeding the date specified for such payment and ending with the day on which such payment is made.
(2) Subject to the provisions of sub–section (2) of section 66, interest under sub– section (1) shall be calculated–
(a) at the time of assessment under any section or in continuation of such assessment; and
(b) on payment including the adjustment of a demand in full.
(3) The liability to pay interest under the provisions of this section shall also arise for a period which is less than a month.
(4) Where a dealer, registered under this Act, has wrongly availed input tax credit or has been granted an erroneous refund in any manner, such dealer shall be liable to pay interest, at such rate as may be notified by the State Government from time to time, on the amount of wrongly availed credit or the amount of such refund as the case may be and such interest shall be calculated from the first day of the month succeeding the month in which the credit was wrongly availed or the refund was erroneously granted till the day on which such payment is made.