KAMAL AUTO INDUSTRIES Vs. COMMERCIAL TAXES OFFICER

JUDGEMENT

(1.) THIS revision petition is directed against the order dated 17th May, 1985, passed by the Sales Tax Tribunal Ajmer. The short question which comes for interpretation is whether interest under Section 11-B of the Rajasthan Sales Tax Act, 1954 (hereinafter referred to as the Act) could be levied for the period 1. 4. 1979 to 31. 3. 1980, when the delay in depositing the tax is less than 30 days ?

(2.) THE Assessing Authority directed the petitioner to deposit interest for the aforesaid period by his order dated 23rd May, 1983. THE dealer's appeal before the Deputy Commissioner (Appeals) was dismissed by order dated 3rd December, 1983. He preferred an appeal before the Board of Revenue and a single member accepted his appeal on 3rd February, 1984, and held that the interest was not leviable under Section 11-B of the Act when the delay in deposit was of less than one month. THE department preferred a special appeal, which was transferred to the Sales-Tax Tribunal on the formation of the same and this appeal has been accepted by the impugned order. THE learned Tribunal has considered in detail the provisions of Section 11-B of the Act as they stood after the amendment of the 5th April, 1979, in comparison with the provisions of the Income Tax Act and Rules, while considering the difference between 'per month' and 'every Month'. It held that direction to pay interest at a particular rate per month from the date the tax was required to be paid until the date of payment does not mean that the delay in deposit of tax should be of more than 30 days before the interest becomes leviable on the amount due.

(3.) FIRST of all it is to be seen as to what is the change in the law on account of amendments made in Section 11-B and 16 (1) (b) of the Act. The earlier provision provided for liability to pay interest from the day commencing after the end of the period within which the tax was to be deposited and thereafter during the time the assessee continued to make default in payment. This was read in conjunction with the provisions of Section 16 (old), which provided for penalty and prosecution etc. and says that the penalty would be levied where the default in payment was for each complete month. The two provisions were read together in order to hold that the interest was payable only when the delay in deposit of tax was of more than a month. Now section 16 (1) (b) has been deleted and under the new Sec. 11-B, interest has to be paid from the date on which the tax was to be paid until the date of payment of tax. This provision no where makes any reference to month or less than a month. Whatever may be the period for which the payment is delayed, either less than one month or more, the rate of interest, which is payable has been specified. By saying the rate payable per month the reference is to the rate and not to the period for which the interest is to be paid. The manner of calculation of interest and the rate at which it is to be calculated is different from the period for which the interest is payable and the two cannot be mixed together. The new provision of section 11-B is unambiguous and conveys in no uncertain term from which day the interest becomes payable and until which day it is to be paid. When it has been specifically mentioned that interest is payable from one day to another then the interest becomes payable for this duration even if this period is shorter than one month.