Penalty for delayed return filing must be computed on actual days of delay, not a full-month basis, under the sales tax provision.

Penalty for delayed filing of returns under section 12(5)(ii) of the Tamil Nadu General Sales Tax Act, 1959 had to be calculated on the actual number of days of delay, even though the provision used the words "for each month or part thereof". The Madras HC treated that wording as materially identical to the expression previously construed under section 24(3) of the same Act and held that it did not require a full-month computation for a fractional delay period. The Tribunal's approach was therefore consistent with the correct interpretation, and the Revenue's challenge failed.

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Issues: Whether penalty under section 12(5)(ii) of the Tamil Nadu General Sales Tax Act, 1959, for delayed filing of returns was to be computed on the basis of each month or part thereof, or only on the actual number of days of delay.

Analysis: The expression in section 12(5)(ii) was treated as materially identical to the words considered earlier in relation to section 24(3) of the same Act. The governing interpretation was that, notwithstanding the phrase "for each month or part thereof", the penalty could be levied only with reference to the actual period of delay in days. The Tribunal's view was consistent with that interpretation.

Conclusion: The penalty could not be computed on a full-month basis for a fractional delay period and had to be restricted to the actual number of days of delay. The challenge by the Revenue failed.

Ratio Decidendi: Where a taxing provision uses the words "for each month or part thereof", penalty for delayed compliance is to be calculated on the actual number of days of delay unless the statute clearly mandates a month-wise computation.

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