IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HON'BLE THE ACTING CHIEF JUSTICE MR.J.B.KOSHY & THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON MONDAY, THE 5TH JANUARY 2009 / 15TH POUSHA 1930 W.A.No. 921 of 2006 --------------------------- AGAINST THE JUDGEMENT IN OP.1860/1998 DATED 5.1.2006 .................... APPELLANT/PETITIONER: ------------------------------------- M/S. PIPE TRADERS, T.D. ROAD, ERNAKULAM, REPRESENTED BY DEEPAK L.. BATHIJA, PARTNER. BY ADV. DR.K.B.MUHAMED KUTTY (SR.) SRI.K.M.FIROZ RESPONDENTS/RESPONDENTS: ----------------------------------------------- 1. THE ASSISTANT COMMISSIONER (ASSESSMENT)-I, SALES TAX OFFICE, SPECIAL CIRCLE-1, ERNAKULAM. 2. THE STATE OF KERALA, REPRESENTED BY THE CHIEF SECRETARY TO GOVERNMENT, SECRETARIAT, THIRUVANANTHAPURAM. BY SR.GOVERNMENT PLEADER SRI.MUHAMMED RAFIQ THIS WRIT APPEAL HAVING BEEN FINALLY HEARD ON 05/01/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: J.B.Koshy, Ag.C.J. & P.R.Ramachandra Menon, J. ------------------------------------------ W.A.No. 921 of 2006 ------------------------------------------ Dated, this the 5th day of January, 2009 JUDGMENT J.B.Koshy, Ag.C.J. The appellant is questioning the levy of interest as was demanded under Section 23(3) of the Kerala General Sales Tax Act by Ext.P3 demand notice made in accordance with the assessment order Ext.P2. It is the case of the appellant that monthly returns were filed and along with the returns tax was also paid and hence there is no delay in payment of tax. 2. In the counter affidavit it is stated that interest is charged for delay in paying the surcharge. However, it is not stated in the demand that interest is charged because of the delay in paying the surcharge. The assessment was made on the basis of the return of the appellant. 3. Therefore, since the reason for levying interest is not made clear, the interest portion mentioned in Ext.P2 assessment W.A.No.921 of 2006 2 order and Ext.P3 demand is set aside. However, we reserve liberty to the Department to issue notice to the appellant if any interest is payable for the delayed payment. The writ appeal is disposed of as above. J.B.Koshy, (Ag. Chief Justice) P.R.Ramachandra Menon (Judge) vns