1993 (10) TMI 329

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....following two questions of law arising out of the order of the Tribunal dated June 1, 1988: 1.. Whether, in the facts and circumstances of the case, interest under section 11B was payable on the amount of penalty? 2.. Whether, in the facts and circumstances of the case, by virtue of the said stay order no interest was payable on decision of the appeal and revision petition? Brief facts of....

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.... penalty is demanded from a dealer as a result of an order passed in any proceedings under this Act (including assessment, appeal, revision, rectification or otherwise) and such tax, interest or penalty, is not paid by such dealer within the time required by or under the provisions of this Act, he shall be liable to pay interest at the rate of two percent per month on the amount of tax or interest....

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.... been placed by the Tribunal, appears to be misconceived, inasmuch as once a demand is created in respect of any tax, interest, fee or penalty and a demand notice is served on the assessee then interest is payable if the said demand is not paid within the time mentioned in the demand notice. Simply because there was a stay, it cannot be said that the demand was not payable. It was not enforceable ....