TaxTMI 
TaxTMI 
1995 (2) TMI 387
X X X X Extracts X X X X
X X X X Extracts X X X X
....of a month?" 2.. The material facts relevant for deciding the controversy are as follows: The assessee is reseller in chemical and plastic raw materials having a number of agencies. The main business of the assessee is to receive plastic raw materials from Indian Petro Chemicals Corporation, Baroda, on consignment basis and to sell the same to the local manufacturers. He is registered as a dealer under the Bombay Sales Tax Act, 1959 ("the Bombay Act" or "the Act") as well as the Central Sales Tax Act, 1956 ("the Central Act"). For the period from November 5, 1983 to October 24, 1984, he was assessed by the Assistant Commissioner of Sales Tax (Assessment), Bombay, under the Bombay Sales Tax Act, 1959 and the Central Sales Tax Act, 1956, b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s reference at the instance of the assessee. 3.. Mr. Surte, learned counsel for the assessee, urged before us that penalty under section 36(3) could be levied only for a complete month and not for a part thereof. In support of this contention, our attention was drawn to sub-section (3) of section 36 of the Act as substituted by the Maharashtra Act 22 of 1988 with effect from April 21, 1987, wherein the words used are "for each month or for part thereof" as against the words "for each month" appearing in the said subsection as it stood during the material period which was prior to April 21, 1987. According to him, the substituted section clearly shows that under the earlier provision, penalty could be levied only for a completed mo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r may subject to such conditions as may be prescribed, and an appellate authority in an appeal under section 55, may remit the whole or any part of the penalty payable in respect of any period." (Emphasis supplied). By the Bombay Sales Tax (Amendment) Act, 1969 (the Maharashtra Act XL of 1969) the bracketed portion beginning with the words "he shall" and ending with the words "in respect of any period" was substituted by the following: "the Commissioner may, after giving the dealer an opportunity of being heard, by an order in writing, impose upon the dealer by way of penalty, in addition to the amount of tax a sum equal to" (a) one per cent of the amount of tax for each month for the first three months, after the last date ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n the tax on which interest is leviable under clause (a), is found due from a dealer or a person in respect of any period as a result of an order of assessment passed under the Act in his case, then such dealer or person shall be liable to pay by way of simple interest, a sum equal to two per cent of such tax, for each month or for part thereof from the first date after the end of the period for which the dealer or person has been so assessed, till the date of such order of assessment. If, as a result of any order passed under this Act, the amount of tax found due is enhanced or reduced, as the case may be, the interest shall be enhanced or reduced accordingly. ..........................." By the above amendment, the provision for pen....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ts for a complete month only. It, therefore, deleted the word "complete" and substituted the words "each complete month"by the words "each month". As a result, penalty of a sum equal to the specified percentage of the amount of tax for each month became leviable. The rate of penalty is specified as a percentage of the amount of tax for each month. Reference to month is in contradistinction to "quarter", "half-year"or "year", etc. It does not and cannot mean that it can be levied only for "a complete month". If a dealer commits default in paying tax within the prescribed time, he would be liable to penalty. For first three months, the rate is lower than the rate applicable for default beyond that period. That was the position before Septe....