9911796707
TMI Blog1995 (2) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee is reseller in chemical and plastic raw materials having a number of agencies. The main business of the assessee is to receive plastic raw materials from Indian Petro Chemicals Corporation, Baroda, on consignment basis and to sell the same to the local manufacturers. He is registered as a dealer under the Bombay Sales Tax Act, 1959 ("the Bombay Act" or "the Act") as well as the Central Sales Tax Act, 1956 ("the Central Act"). For the period from November 5, 1983 to October 24, 1984, he was assessed by the Assistant Commissioner of Sales Tax (Assessment), Bombay, under the Bombay Sales Tax Act, 1959 and the Central Sales Tax Act, 1956, by his order of assessment dated April 7, 1987. The said order of assessment-cum-penalty resulted in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed before us that penalty under section 36(3) could be levied only for a complete month and not for a part thereof. In support of this contention, our attention was drawn to sub-section (3) of section 36 of the Act as substituted by the Maharashtra Act 22 of 1988 with effect from April 21, 1987, wherein the words used are "for each month or for part thereof" as against the words "for each month" appearing in the said subsection as it stood during the material period which was prior to April 21, 1987. According to him, the substituted section clearly shows that under the earlier provision, penalty could be levied only for a completed month and not a part thereof. On the other hand, the submission of the learned counsel for the Revenue Mr. N. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may remit the whole or any part of the penalty payable in respect of any period." (Emphasis supplied). By the Bombay Sales Tax (Amendment) Act, 1969 (the Maharashtra Act XL of 1969) the bracketed portion beginning with the words "he shall" and ending with the words "in respect of any period" was substituted by the following: "the Commissioner may, after giving the dealer an opportunity of being heard, by an order in writing, impose upon the dealer by way of penalty, in addition to the amount of tax a sum equal to" (a) one per cent of the amount of tax for each month for the first three months, after the last date by which the dealer should have paid that tax, and (b) one and one-half per cent of the amount of tax for each month t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... result of an order of assessment passed under the Act in his case, then such dealer or person shall be liable to pay by way of simple interest, a sum equal to two per cent of such tax, for each month or for part thereof from the first date after the end of the period for which the dealer or person has been so assessed, till the date of such order of assessment. If, as a result of any order passed under this Act, the amount of tax found due is enhanced or reduced, as the case may be, the interest shall be enhanced or reduced accordingly. ..........................." By the above amendment, the provision for penalty was deleted and new provision was made for levy of simple interest at the specified rate for the period of default. We are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... each month". As a result, penalty of a sum equal to the specified percentage of the amount of tax for each month became leviable. The rate of penalty is specified as a percentage of the amount of tax for each month. Reference to month is in contradistinction to "quarter", "half-year"or "year", etc. It does not and cannot mean that it can be levied only for "a complete month". If a dealer commits default in paying tax within the prescribed time, he would be liable to penalty. For first three months, the rate is lower than the rate applicable for default beyond that period. That was the position before September 1, 1969, when the expression used in clauses (a) and (b) was "for each complete month". The law was changed thereafter and the exp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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