Penalty and interest for late return filing were unavailable where tax had already been paid before filing.

Under the Punjab General Sales Tax Act, penalty under section 10(6) and interest under section 11-D are attracted only where tax payable according to the return is not paid, not merely because the return is filed late. Rule 20 fixed the time for filing returns, but breach of that filing deadline did not by itself justify penalty or interest when the tax had already been paid before the return was submitted. Any consequence for delayed filing, if available, lay elsewhere in the statute, such as section 23.

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Issues: Whether penalty under section 10(6) of the Punjab General Sales Tax Act, 1948 and interest under section 11-D of that Act could be imposed for delayed filing of return when the tax was paid before the return was filed, and whether rule 20 of the Punjab General Sales Tax Rules, 1949 altered that position.

Analysis: The statutory scheme linked the obligation to pay voluntary tax with the filing of the return under section 10(3) and section 10(4). The earlier decision in Oswal Spinning & Weaving Mills Ltd. applied the constitutional bench ruling in J.K. Synthetics Ltd. to hold that penalty under section 10(6) and interest under section 11-D arise only when tax payable according to the return is not paid, and not merely because the return is filed late. Rule 20 fixed the time for filing the return, but breach of that rule did not authorise penalty under section 10(6) or interest under section 11-D for delayed filing alone; such delay could, if permissible, be dealt with under section 23.

Conclusion: Penalty under section 10(6) and interest under section 11-D were not leviable merely for delayed filing of return where the tax was otherwise paid before filing the return; the challenge succeeded.

Ratio Decidendi: Under the Punjab General Sales Tax Act, penalty and interest provisions tied to non-payment of tax according to the return are attracted only when there is a default in payment of tax due on the basis of the return, not by mere delay in filing the return.

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