TNVAT: Interest Demand should be within a reasonable period of time

Aruna Hotel Limited Vs Assistant Commissioner (ST) (Madras High Court) Introduction: In a recent judgment, the Madras High Court addressed challenges raised by Aruna Hotel Limited against demands under the Tamil Nadu Value Added Tax Act, Tamil Nadu General Sales Tax Act, and Central Sales Tax Act. The court’s focus was on the levy of interest on belated tax payments and the clarity required in bifurcating interest components. Detailed Analysis: Aruna Hotel Limited faced demands under TNVAT, TNGST, and CST Acts, challenging notices received after settling admitted tax demands. The assessm...