IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR FRIDAY, THE 5TH DECEMBER 2008 / 14TH AGRAHAYANA 1930 OP.No. 1508 of 2001(Y) ---------------------- PETITIONER(S): --------------- R.GIRIDHAR, KALA FASHION FABRICS, PAZHAVANANGADI, TRIVANDRUM. BY ADV. DR.K.B.MUHAMED KUTTY (SR.) RESPONDENT(S): --------------- 1. THE ASSISTANT COMMISSIONER(ASST.)III, SPECIAL CIRCLE, TRIVANDRUM. 2. THE DEPUTY TAHSILDAR(RR), TALUK OFFICE, TRIVANDRUM. 3. THE STATE OF KERALA, REP. BY SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, TRIVANDRUM. BY G.P. SRI.TEKCHAND THIS ORIGINAL PETITION HAVING BEEN FINALLY HEARD ON 05/12/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ORDER ON CMP NO.2510/2001 IN O.P. NO.1508/2001 DISMISSED: 5.12.2008 SD/-(C.N.RAMACHANDRAN NAIR, JUDGE.) APPENDIX PETITIONER'S EXHIBITS: P1: TRUE COPY OF ANNUAL RETURN FOR 95-96 IN FORM NO.9, UNDER KGST RULES, 1963 SUBMITTED BY PETITIONER. P2: TRUE COPY OF ASST. ORDER FOR 95-96 DT.12.11.99 OF R1. P3: TRUE COPY OF CERTIFICATE OF PAYMENT DT.3.1.2000 ISSUED BY R1. P4: TRUE COPY OF REVISION ORDER DT.11.12.2000 SUBMITTED BEFORE THE DY. COMMR. COMMERCIAL TAX, TVM. P5: TRUE COPY OF ORDER DT.8.1.2001 IN CMP NO.372/2001 IN O.P. 272/2001 G OF THIS HON'BLE COURT. P6: TRUE COPY OF DEMAND NOTICE IN FORM NO.1 DT.13.11.2000 ISSUED BY R2. P7: TRUE COPY OF DEMAND NOTICE IN FORM-10 DT.14.11.2000 ISSUED BY R2. TRUE COPY PA TO JUDGE C.N.RAMACHANDRAN NAIR, J. .................................................................... O.P. No.1508 of 2001 .................................................................... Dated this the 5th day of December, 2008. JUDGMENT Challenge is against demand of interest vide Ext.P2 which is for the period prior to the assessment and demand of tax. The petitioner appears to have remitted tax on the turnover of readymade garments at 6% as against 10% payable. Interest of course could be demanded for the period prior to the assessment and demand under Section 23(3) only after the introduction of Section 23(3A) to the KGST Act. For period prior to the introduction of Section 23(3A), the Supreme Court has held that interest can be demanded under Section 23(3) only for default in payment of tax either demanded or payable under the provisions of the Act and Rules. Since the officer has not adjudicated the matter, O.P. is disposed of directing the Assessing Officer to consider petitioner's objections and demand interest with reference to statutory provisions and based on decisions of the Supreme Court and this court. He should also consider the latest judgment of this court in S.T. Rev. No.339/2003. C.N.RAMACHANDRAN NAIR Judge pms