9911796707
TMI Blog1993 (11) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... determined at Rs. 13,56,923.96 and deducting the surcharge paid, an amount of Rs. 67,848.20 was determined as surcharge payable. The appeal filed by the petitioner was disposed of by the Deputy Commissioner (Appeals), Agricultural Income-tax and Sales Tax, Kollam, by exhibit P2 dated February 5, 1986. Some modification was made by the first appellate authority. The second appeal filed by the petitioner before the Sales Tax Appellate Tribunal, Trivandrum, was disposed of by exhibit P3 dated March 30, 1987. The order passed in the appeal was given effect to by the assessing authority, by exhibit P4 dated July 7, 1987. The taxable turnover was fixed at Rs. 4,21,86,500 and a tax liability of Rs. 20,90,510 was arrived at. After deducting the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Provided that the time-limit of twenty one days for a notice under this subsection shall not apply-to casual traders. ..................... (3) If the tax or any other amount assessed or due under this Act is not paid by any dealer or other person within the time prescribed therefor, in this Act or in any rule made thereunder and in other cases within the time specified therefor in the notice of demand, or within the time allowed for its payment by the appellate or revisional authority, as the case may be, or if payment is permitted in instalments by any of the authorities empowered in this behalf, any such instalment is not paid within the time specified therefor, the dealer or other person shall pay, by way of penal interest, in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order. On a fair reading of the provisions of the Act, it is idle to contend that penal interest under section 23(3) of the Act will become due only from the date of the appellate or revisional order. We are of the view that penal interest under section 23(3) of the Act will accrue due and will be payable immediately after the notice of demand is served, in pursuance to the order of assessment and as indicated in the notice of demand. We repel the plea to the contrary. 5.. We hold that interest is payable only on the amount of tax due as reduced in the appeals. The learned single Judge was of the view that it is not clear from exhibit P5 whether interest has been demanded on the entire amount of tax including the amount reduced in the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In view of the Full Bench decision of this Court in Sreekumar's case [1992] 86 STC 274; 1992 (1) KLT 597 (FB), which is binding on us, the liability to pay penal interest is automatic and no formal order imposing penalty is necessary. In Abdulla's case [1992] 86 STC 259; 1992 (1) KLT 658 (FB), this Court has held that service of a notice of demand is not an essential pre-requisite for the levy and collection of penal interest. 7.. It is in the light of the above two Full Bench decisions, we are of the view that the learned single Judge has shown indulgence to the appellant, in stating that before the quantification of penal interest is made, a notice shall be served on the appellant. Since there is no appeal by the Revenue, we do not pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Validation of Recovery Proceedings) Act, 1967]. The effect of the legislation, at any rate, is to dispense with the service of a fresh notice of demand in cases where the tax has been reduced in appeal. What is required is only an intimation about the quantum of tax payable as a result of the modification made in the appeal. It has been so done in the instant case, as per exhibit P4 and tax due as per the appellate order has been calculated. The original notice of demand is not superseded by the passing of the appellate order. It is kept alive for amounts due, whatever be, as per the appellate or revisional order. There is no merit in the plea that interest accrues only from the date of the appellate order. The Kerala Taxation Laws (Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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