Statutory interpretation of penalty period: "each month" covers part-month delays after amendment to the tax law.

Section 36(3) of the Bombay Sales Tax Act, 1959 was construed to permit penalty for delayed tax payment for a part of a month as well as for a complete month. The Court held that the legislative amendment replacing the phrase "for each complete month" with "for each month" showed a deliberate expansion of the penalty period, and the word "month" could not be read back as "complete month" without defeating the amendment. A later provision using "for part thereof" in an interest context did not alter this interpretation. The issue was answered in favour of the Revenue.

---

---

Issues: Whether, under section 36(3) of the Bombay Sales Tax Act, 1959, penalty for delayed payment of tax could be levied for a part of a month or only for a complete month.

Analysis: The expression originally used in section 36(3) was "for each complete month". By amendment with effect from 1 September 1969, the Legislature deliberately substituted that phrase with "for each month". The change showed a clear legislative intent to move away from restricting penalty to completed months only. Reading "each month" as "each complete month" would nullify the amendment and defeat the purpose of the substitution. The later 1987 provision, which used "for each month or for part thereof" in the context of interest, did not alter the meaning of the earlier penalty provision.

Conclusion: Penalty under section 36(3) was leviable for a part of a month as well as for a complete month, and the question was answered in the affirmative in favour of the Revenue.

Ratio Decidendi: Where the Legislature substitutes "each complete month" with "each month" in a penalty provision, the courts must give effect to the deliberate expansion and not read the word "month" as limited to a completed month.

---