VIJAYALAXMI CASHEW CO Vs. ASST COMMR OF SALESTAX

JUDGEMENT

(1.) The petitioner/appellant is a proprietary concern. It is a dealer in cashew. It is an assessee under the K.G.S.T. Act. We are concerned with the assessment year 1975-76. An order of assessment was passed on 30-11-1978. A taxable turnover of Rs.4,23,32,097.04 was determined in Ext. P1 order of assessment. Deducting the tax paid, the balance tax payable was 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), Agrl. Income Tax and Sales Tax, Kollam, by Ext. P2 dated 5-2-1986. 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 Ext. P3 dated 30-3-1987. The order passed in the appeal was given effect to, by the assessing authority, by Ext. P4 dated 7-7-1987. 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 tax paid, the tax-payable was determined at Rs.11 ,68,973.50 and after deducting the surcharge paid, the surcharge payable was determined at Rs.58,447.70. By Ext. P5 dated 29-2-1988, the petitioner was directed to pay the penal interest under S.23(3) of the Kerala General Sales Tax Act in the sum of Rs. 14,36,082.80. In the Original Petition, the attack was against Ext. P5.

(2.) We heard counsel for the appellant/petitioner. The main grievance of the counsel for the appellant is that penal interest is calculated for the amount due as per the appellate order, for the period from the date of the original notice of demand. According to counsel, penal interest is become payable only for the amount due as per the appellate order and from the date of the appellate order.

(3.) It will be useful to extract S.23(1), 23(3) and 23(5) of the Kerala General Sales Tax Act. They are as follows: