Harmonious reading of sales tax interest provisions upheld, with penalty reduction sustained on bona fide explanation.

Interest under section 47(4A) of the Gujarat Sales Tax Act must be read harmoniously: where the dealer pays the tax before the assessment order, interest on the unpaid differential amount runs only up to the date of actual payment, while the assessment-stage clause applies only to amounts still unpaid. The Tribunal's view on interest was upheld. The Tribunal's discretionary reduction of penalty under section 45(6) to 10% on the basis of a bona fide explanation was also upheld, as it rested on appreciation of facts and did not raise a substantial question of law.

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Issues: (i) Whether interest under section 47(4A) of the Gujarat Sales Tax Act, 1969 was payable only up to the date of actual payment where the dealer paid the tax before the assessment order, and not up to the date of assessment order on the entire differential amount. (ii) Whether the Tribunal was justified in reducing the penalty under section 45(6) of the Gujarat Sales Tax Act, 1969 to 10% on the basis of the dealer's explanation.

Issue (i): Whether interest under section 47(4A) of the Gujarat Sales Tax Act, 1969 was payable only up to the date of actual payment where the dealer paid the tax before the assessment order, and not up to the date of assessment order on the entire differential amount.

Analysis: Section 47(4A)(a) provides for interest from the prescribed date until the date of actual payment where tax is not paid within time. Section 47(4A)(b) applies where the assessed tax exceeds the amount already paid and requires interest on the unpaid amount from the prescribed date until the assessment or reassessment order. The two clauses must be read harmoniously so that clause (a) is not rendered redundant. Where the dealer has made payment before the assessment order, interest is payable on the unpaid differential amount only up to the date of such payment, while clause (b) covers the amount that still remains unpaid up to the date of assessment.

Conclusion: The Tribunal's view on interest was correct and is upheld.

Issue (ii): Whether the Tribunal was justified in reducing the penalty under section 45(6) of the Gujarat Sales Tax Act, 1969 to 10% on the basis of the dealer's explanation.

Analysis: The Tribunal accepted the dealer's explanation as bona fide and reduced the penalty in exercise of discretion. That exercise of discretion involved appreciation of facts and did not raise any substantial question of law warranting interference in appeal.

Conclusion: The reduction of penalty by the Tribunal is upheld.

Final Conclusion: The impugned order disclosed no legal infirmity and no substantial question of law arose for interference; the appeal was liable to fail.

Ratio Decidendi: Interest under a split charging provision must be determined by harmoniously reading the clauses so that interest on tax paid after the prescribed time runs only up to the date of actual payment, while assessment-stage interest applies only to the amount still unpaid, and a discretionary reduction of penalty based on a bona fide explanation will not ordinarily give rise to a question of law.

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