Interest on delayed payment of tax

Interest on delayed payment of tax.

1. (1) If an importer does not pay the tax within the time prescribed for its payment under this Act, he shall pay, in addition to the amount of tax, interest at the rate of eighteen per cent. per annum on the amount of tax not so paid or any less amount thereof, for the period of delay: Provided that the State Government may, by notification in the official Gazette, reduce the rate of interest for such class of importers or such specified goods as may be specified in the notification.
2. (2) Where the amount of tax is increased in consequence of any order passed under or in pursuance of this Act, interest shall be payable on the amount by which the tax is so increased.