Order

1. These appeals are against the order of the Calcutta High Court dated 22-12-1997. Briefly stated, the facts are as follows:

The appellants filed their returns, one under the Bengal Finance (Sales Tax) Act, 1941 and another under the West Bengal Sales Tax Act, 1954. Inboth cases assessment orders were passed wherein additional demands were made. The appellants filed appeals (under Section 20 of the 1941 Act and Section 12 of the 1954 Act). In those appeals stay of recovery was granted, however, the appellants were directed to deposit certain amounts. Those amounts were deposited. Ultimately, in the appeal (pertaining to the return

under the 1941 Act), an order came to be passed directing recomputation on the basis set out in that judgment. In the other appeal (pertaining to the 1954 Act), the amount of tax due was reduced.

2. The respondents then issued fresh demand notices in both the cases.

However, in these notices interest was claimed from March 1993 to September 1996. Against the demand for interest, the assessee filed an appeal which was dismissed. By the impugned judgment the writ petition filed by them has been dismissed.

3. The question before this Court is whether the assessee could be considered to be a defaulter and liable to pay interest.

4. The sections under the 1941 Act and the 1954 Act are identical.

Therefore, we reproduce the relevant portion of Sections 10-A and 20 of the 1941 Act:

"1O-A. Interest payable by dealer.-(1) Where a registered or certified

dealer furnishes a return referred to in Section 10 in respect of any period by the prescribed date or thereafter, but fails to make full payment of tax payable in respect of such period by such prescribed date, he shall pay a simple interest at the rate of two per centum for each English calendar month of default from the first day of such month next following the prescribed date up to the month preceding the month of full payment of such tax or up to the month prior to the month of assessment under Section 11 in respect of such period, whichever is earlier, upon so much of the amount of tax payable by him according to such return as remains unpaid at the commencement of each such month:

Provided that where such dealer admits in writing that the amount of tax a payable in respect of such period is an amount which is either more or less than what has been originally shown as payable in the return and where the Commissioner is satisfied on the point of such admission, the interest shall be payable upon so much of the amount of tax payable according to such admission as remains unpaid at the commencement of each such month.

(2) Where a registered or certified dealer fails to furnish a return referred to in Section 10 in respect of any period by the prescribed date orthereafter before the assessment under Section 11 in respect of such period, and on such assessment full amount of tax payable for such period is found not to have been paid by him by such prescribed date, he shall pay a simple interest at the rate of two per centum for each English calendar month of default from the first day of the month next following the prescribed date up to the month preceding the month of full payment of tax for such period or up to the month prior to the month of assessment under Section 11 in respectof such period, whichever is earlier, upon so much of the amount of tax payable by him according to such assessment as remains unpaid at the commencement of each such month: Provided that where an assessment under Section 11 is made for more than one return period and such assessment does not show separately the tax payable for the period in respect of which interest is payable under this sub- section, the Commissioner shall estimate the tax payable for such period on the basis of such assessment after giving the dealer an opportunity of being heard.

(3) Where a dealer fails to make payment of any tax payable after assessment by the date specified in the notice issued under