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TMI Blog1964 (10) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... mand notice for the tax thus levied was served on him on 9th April, 1952. The demand notice specified a period of 21 days for making the payment. In the Madras General Sales Tax Act of 1939 then in force there was no provision for levy of any interest by way of penalty on tax not paid within the time specified in the notice of demand. In the Madras General Sales Tax Act of 1959, however, section 24(3) had such a provision in the following terms: "If the tax assessed under this Act or any instalment thereof is not paid by any dealer or person within the time specified therefor in the notice of assessment or in the order permitting payment in instalments, the dealer or person shall pay by way of penalty, in addition to the amount due a sum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acted in section 61 of the Madras General Sales Tax Act of 1959 for supporting the demand. The transitory provision is in the form, which is usually found, where there is a repealing and a re-enacting piece of legislation, as in the case of the Madras General Sales Tax Act of 1959. Section 61 reads: "Repeal.-(1) The Madras General Sales Tax Act, 1939 (Madras Act IX of 1939), is hereby repealed: Provided that such repeal shall not affect the previous operation of the said Act or any right, title, obligation or liability already acquired, accrued or incurred thereunder and subject thereto, anything done or any action taken including any appointment, notification, notice, order, rule, form, regulation, certificate, licence or permit in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the period for which the State is kept out of the money to which it is entitled. Levy of such an amount cannot by any stretch of interpretation be treated as a process of recovery of an amount due. Therefore, support for the impugned levy cannot be found in any of the clauses of the transitory provision in section 61 of the Madras General Sales Tax Act, 1959, much less in the concluding clause of the proviso above referred to and which is relied upon by the Government Pleader. The learned Government Pleader quoted the decision of the Supreme Court in Income-tax Commissioner v. Bhikaji Dadabhai [1961] 42 I.T.R. 123; A.I.R. 1961 S.C. 1265.. In that case an amount of income-tax was due as an arrear under an earlier Hyderabad Income-tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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