TMI Blog1972 (7) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of Rs. 9,262.37 was served upon them. The petitioners filed an appeal against the assessment order and also approached the Commissioner of Sales Tax for the stay of the tax demanded from them. It appears from the counter-affidavit of Sri H.D. Gupta that on 15th September, 1960, the Commissioner passed an order staying the realisation of tax till the decision of the petitioners' appeal. Later, on 29th November, 1960, another order was passed by the Commissioner granting stay "till further orders". The petitioners' appeal was dismissed on 25th July, 1962. The petitioners then filed a revision petition which was also disposed of on 17th October, 1964. However, no order vacating the stay order was passed by the Commissioner until August, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 8 shows very clearly that penal interest at the rate of 18 per cent. is chargeable from a defaulter, if the tax mentioned in the notice of demand issued under sub-section (1) of section 8 remains unpaid for six months after the expiry of time specified in the notice of demand. If an assessee is not a defaulter, no penal interest can be charged from him. Under sub-section (4) of section 8, the assessing authority may, at any time or from time to time, amend or revoke any notice of demand or extend the time for making the payment in pursuance of the notice. The Sales Tax Officer is an assessing authority. Thus, if the Sales Tax Officer extends the time for payment the assessee cannot be said to be in default for purposes of levy of penal in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during the pendency of an appeal or revision, such an order would certainly come to an end on the decision of the appeal or the revision. But the Commissioner under section 8(4) may extend the time for payment of sales tax, even if no appeal or revision is pending. The order passed in the instant case by the Commissioner was to remain in force until further orders. It is thus clear that the stay order passed by the Commissioner on 29th November, 1960, remained in operation until it was revoked by the Commissioner in August, 1967. During the intervening period the petitioners were not defaulters and were not liable to pay penal interest. The petition succeeds and is allowed to the extent that the respondents are restrained from realising pen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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