Penalty for delayed sales tax payment is not automatic where the explanation is plausible and the delay is brief.

Penalty for delayed payment of sales tax under Section 15(4) of the Andhra Pradesh General Sales Tax Act was not automatic; the authority had to consider the dealer's explanation, the length of the delay, and whether tax was paid with interest. Applying the scheme of Section 15(4) read with Section 16(3), Rule 17-F(2), and the appellate powers under Section 21(4), the Tribunal held that penalty could be declined where the delay was short and the explanation was plausible and bona fide. The revisional interference was therefore unjustified, and the Tribunal's order in favour of the assessee was sustained.

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Issues: Whether penalty for delayed payment of sales tax under Section 15(4) of the Andhra Pradesh General Sales Tax Act, 1957 was mandatory in the facts of the case, and whether the revisional interference with the appellate order was justified.

Analysis: The Appellate Tribunal had examined the factual circumstances of the delayed payment, the assessee's explanation of financial difficulty, the short span of delay, and the fact that tax had been paid along with interest. It also considered the scheme of Section 15(4) of the Andhra Pradesh General Sales Tax Act, 1957, read with Section 16(3) and Rule 17-F(2) of the Andhra Pradesh General Sales Tax Rules, and the wide appellate powers under Section 21(4) of the Andhra Pradesh General Sales Tax Act, 1957. On that basis, the Tribunal held that penalty was not automatic and that the authority had to decide the matter judiciously after considering the explanation offered by the dealer.

Conclusion: Penalty under Section 15(4) was held not to be mandatory in every case of delayed payment, and the revisional authority was not justified in interfering with the appellate order.

Final Conclusion: The revisions failed, and the Tribunal's decision in favour of the assessee was sustained.

Ratio Decidendi: Where a taxing provision for delayed payment of tax requires notice and consideration of the assessee's explanation, penalty is not automatic and may be declined when the delay is short and the explanation is plausible and bona fide.

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