Report No. 61

7.3. Amplitude of the entries.-

On this principal, the imposition of interest on arrears of sales tax has been upheld. Though the State List, entry 54, of the Constitution does not refer to interest, the power to charge interest on arrears is regarded as incidental to the power to impose sales tax1.

1. B. Ram Chand v. S.T.O, 1968 All LJ 970 (972): 23 STC 423 (DB) (Oak, C.J. and T.P. Mukherji, J.).