1989 (9) TMI 382

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....al is the extent of liability of the appellant to pay penal interest in regard to sales tax payable for the years 1978-79 and 1979-80. The third respondent imposed penalty in regard to each year. The appellant challenged the same in revision petitions filed before the second respondent who held that the order of the third respondent is not sustainable and penal interest is leviable only on default....

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....the date on which he filed the revised returns. This order is now challenged. 2.. The appellant has formulated two questions of law for consideration. It is necessary to consider only the second question, namely: "Whether the liability to penal interest under section 23(3) arises only on failure to comply with the demand for the tax? " This question arises in view of the fact that the Board ....