Sukhdev Singh Kang, J.

1. This is a reference under Sec.42 of the Haryana General Sales Tax Act, 1973 (for short "the Act") made at the instance of the Excise and Taxation Commissioner, Haryana. First the factual matrix : The respondent-dealer was required to file return for the quarter ending 30th June, 1976, on or before 30th July, 1976. He made an application for extension of time for filing the return. The extension was granted and the dealer was permitted to file return on or before 6th August, 1976. Complying with this order the dealer filed his return and paid the tax on 5th August, 1976. However, the Assessing Authority was of the view, inspired by the decision of the Final Court in Haji Lal Mohd. Biri Works V/s. State of U. P. [1973] 32 STC 496, that under Sec.25 (5) of the Act the assessee became liable to pay interest on the amount of tax which became due and was not paid with effect from the date prescribed for filing the return. Liability to pay interest on the unpaid tax is created by the statute and the Assessing Authority has no discretion to grant any exemption from payment of any interest. The liability to pay interest is automatic and arises by operation