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TMI Blog1986 (2) TMI 306X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellate or revising authority or within the time specified therefor in this Act or in any rule made thereunder, the dealer or other person shall pay, by way of penal interest, in the manner prescribed, in addition to the amount due, a sum equal to- (a) one per cent of such amount for each month or part thereof for the first three months after the date specified for its payment; (b) two per cent of such amount for each month or part thereof subsequent to the first three months aforesaid." It is clear from this statutory provision that it provides for levy of penal interest in circumstances specified therein. Penal interest at the rate specified in sub-section (3) of section 23 of the Act becomes payable if the conditions specified therein are satisfied, in addition to the liability specified therein. The liability to pay penal interest gets attracted if the following amounts are not paid within the date specified for its payment: (i) tax assessed; (ii) any other amount due under the Act; or (iii) any instalments thereof. The penal interest is attracted if the amount is required to be paid within the time specified in the notice of demand and the same is not paid. Li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate the total taxable turnover as also the tax payable by him in the return which is required to be submitted in form No. 8 within the specified time. Sub-rule (3) of rule 18 imposes an obligation on the dealer to submit along with the return evidence regarding payment of tax in accordance with the return submitted by him and further provides for the further steps to be taken in the event of the dealer not paying the tax in accordance with the return submitted by him. In such an event, an obligation has been cast on the assessing authority under sub-rule (3) of rule 18 to serve upon the dealer a demand notice in form No. 14. On such demand in form No. 14 being served on the dealer, sub-rule (3) of rule 18 provides that the dealer shall pay the sum so demanded within the time specified therein and in the manner specified therein. This brings us to form No. 14 contemplated by sub-rule (1) of rule 18. 4.. For the sake of convenience, we propose to extract form No. 14, prescribed by the Rules, which is as follows: "THE KERALA GENERAL SALES TAX RULES, 1963 FORM No. 14 Notice to provisional annual demand [See rules 18(3) and 21(ii)] Assessment No. To .................. ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rement of the notice of demand attracts the consequence of the amount being recovered as arrears of land revenue and/or fine imposed by a Magistrate and that the dealer will also be liable to pay penalty prescribed under sub-section (3) of section 23 of the Act. That being the clear effect of the statements in form No. 14, if the dealer to whom notice is issued does not pay the amount specified in the notice of demand within the specified time, the dealer shall incur the liability to pay penalty prescribed under sub-section (3) of section 23 of the Act. In other words, the clear implication is that if the dealer complies with the terms of the notice of demand issued in form No. 14, he shall not incur the liability to pay penalty prescribed under sub-section (3) of section 23 of the Act. Sub-section (3) of section 23 of the Act enables the assessing authority to levy penal interest at the specified rates if the tax assessed or any other amount due under the Act are not paid within the time specified either in the notice of demand or within the time specified in the Act or the Rules. The liability to pay tax in accordance with the return submitted by the dealer is fixed by sub-rule ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other decisions relied on by the learned Government Pleader, reported in Royal Boot House v. State of Jammu Kashmir [1984] 56 STC 212 (SC) and Khazan Chand v. State of Jammu Kashmir [1984] 56 STC 214 (SC). The provisions of the Jammu and Kashmir General Sales Tax Act considered in the said two decisions also do not contain any provisions similar to rule 18(3) and form No. 14 with which we are concerned in this case and hence no assistance could be derived by the learned Government Pleader from those decisions. 6.. Before concluding we must consider the objections raised by the learned Government Pleader to the maintainability of the petition under article 226 of the Constitution on the ground that the petitioner has an effective and efficacious remedy by way of revision under section 38 of the Act. The learned counsel for the petitioner submitted that though he has invoked the revisional jurisdiction under section 38 of the Act, he undertakes to withdraw the revision and the only remedy he wants to pursue is the petition under article 226 of the Constitution. The learned Government Pleader submitted that there being an alternative remedy available, which is equally efficacio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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