Section 39(4) in The Bihar Value Added Tax Act, 2005
(4)Where, in course of any proceeding, the prescribed authority finds that any dealer has-(i)wrongly claimed either the whole or part of his turnover as not taxable and, has consequently, paid lesser amount of tax than payable by him; or(ii)wrongly declared his turnover or any particulars thereof and thereby has reduced the amount of tax payable under this Act; or(iii)wrongly claimed input tax credit in excess of what he is entitled to under this Act, the dealer shall pay, in addition to the amount of tax assessed under any proceeding as aforesaid, simple interest at the rate of one and a half per cent. for each calendar month or part thereof on the difference of the amount previously admitted and tax finally assessed from the date, the tax would have been payable had the dealer not committed any of the acts mentioned in clause (i) or clause (ii) or clause (iii):Provided that where the recovery of tax or any part thereof assessed under any proceeding under this Act is stayed as a result of an order on appeal or by any competent court, the amount of such interest shall be recoverable after the final order is passed and such order is confirmed from the date the tax first became due.
