The assessee made certain inter-State sales paying sales tax at concessional rate against C forms prescribed under the Central Sales tax Act, 1956 to be furnished by the buyers. However, for certain sales transactions, the assessee could not obtain the required forms from the buyers and thus normal rate of tax was made applicable on such transactions. The assessee was required to deposit the differential amount of sales tax. Since there was a delay the assessee was made to deposit interest. The Assessing Officer disallowed the claim to deduction of the interest on the ground that it had been incurred on account of violation of law. The Commissioner (Appeals) upheld the disallowance.  Tribunal held that  the amount of tax deposited by the assessee was not in the nature of penalty for contravention of any law. It was only a tax which was paid as the route of concessional rate of tax was blocked as the assessee was not able to deposit the requisite forms with the Sales Tax Department. Therefore, the assessee was entitled to deduction. (AY.2016-17)