9911796707
TMI Blog1987 (8) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner as per exhibits P2 to P5, the last payment being on 31st March, 1987. According to the petitioner exhibit P6 notice issued, after such payment, is illegal and the proposed action under the Revenue Recovery Act is unwarranted. 2.. In the counter-affidavit filed on behalf of the second respondent it is stated that District Collector has advised for recovery by letter No. B4-52655/82 dated 23rd November, 1982 of a sum of Rs. 58,205.96 inclusive of penal interest of Rs. 10,101.73. The defaulter has remitted a sum of Rs. 34,205.96 till 9th January, 1986. The petitioner had also remitted Rs. 24,028.00 from 20th March, 1986 to 31st March, 1987. Thus a total amount of Rs. 58,233.96 has been realised from him. It is further stated that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd proper that the defaulter is given an opportunity to be heard regarding the quantum. 4.. Penal interest is levied under section 23(3) of the Kerala General Sales Tax Act which provides that if the tax assessed or any other amount due under the Act is not paid by any dealer within the time specified therefor in the notice of demand the dealer shall pay by way of penal interest in the manner prescribed, in addition to the amount due, interest at the specified rate. Rule 31 of the Kerala General Sales Tax Rules prescribes the mode of payment of penalty. The penal interest can be paid either separately or along with the tax. Sub-rule (2) provides that: "The assessing authority concerned may calculate the penal interest payable under sub-se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he defaulter an opportunity of being heard in the matter of computation, is opposed to the rules of natural justice and cannot be sustained. In view of the liability of the defaulter to pay the interest even in the absence of a demand by the assessing authority when a demand notice is issued under section 7 of the Revenue Recovery Act, there is nothing improper on the part of the village officer in realising the penal interest after quantification of the same with notice to the defaulter. Exhibit P6 demand had been issued by the second respondent, the village officer, without giving that opportunity and is therefore in violation of the principles of natural justice. It is liable to be quashed without prejudice to any proceedings being taken ..... X X X X Extracts X X X X X X X X Extracts X X X X
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