1986 (2) TMI 326 - HC - VAT and Sales Tax

Summary

The petitioner challenged the levy of penal interest under the Kerala General Sales Tax Act for not paying tax as per the return submitted. The court ruled that penal interest can only be levied if a notice of demand is issued, which was not done in this case. Therefore, the levy of penal interest was quashed, and the petition was allowed. No costs were awarded. (Case: Joy Varghese v. State of Kerala)