2005 (6) TMI 535

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....RADHAKRISHNAN J.-Whether levy of penal interest for the delayed payment of additional sales tax payable under section 5D of the Kerala General Sales Tax Act, 1963 is justified or not is the question that has come up for consideration in this case. The assessee is a dealer in gold ornaments. They opted to pay tax at the compounded rates under section 7 of the KGST Act for the year 2001-02. The r....

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....4. The assessing authority also demanded an amount of Rs.61,974 being the penal interest. Order of the assessing authority was challenged by the assessee before the Deputy Commissioner stating that the assessing authority had erred in levying additional tax with effect from July 23, 2001 and that the assessing authority was not justified in levying interest for non-payment of additional sales t....

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.... section 7 is also liable to pay the additional tax under section 5D of the KGST Act, 1963. This court upheld the said provision and held that the assessee is liable. We are in this case concerned with the question whether in such a case for delayed payment penal interest could be demanded. Section 5 and section 5A are charging section. Section 5 provides for the levy of sales tax on the transfer ....