1989 (9) TMI 382 - HC - VAT and Sales Tax

Summary

The appeal concerns the liability of the appellant to pay penal interest for sales tax in 1978-79 and 1979-80. The Board of Revenue restored the penalty imposed by the third respondent, stating that penal interest is leviable only on failure to comply with the demand for tax. The Court agreed with the appellant, citing a previous Division Bench decision. The orders imposing penalty were set aside, and the appeal was allowed without costs. (Case: 1989 (9) TMI 382 - KERALA HIGH COURT)