1. Whether the appellant, an assessee, is liable to pay any penal interest on the assessed tax under S.23(3) of the Kerala General Sales Tax Act, 1963 (hereinafter 'the Act', for short), from the date when return was due though neither a return was furnished nor any tax paid on self-assessment basis, is the question arising for decision in this appeal.

2. Briefly stated the relevant facts are as follows: In April, 1983 the appellant, stationed in Patna, entered into an agreement with M/s. Tata Oil Mills Co. Ltd. to supply imported inedible tallow to their factory at Ernakulam. Accordingly, the tallow was imported at the Cochin Port and delivered to the buyer. The appellant did not filed a return of the turnover relating to the abovesaid transaction. The Sales Tax Officer finalised the assessment on 10.10.1984 and served the appellant on 4.3.1985 with notice raising a demand of sales tax whereafter the tax was paid. The appellant was then served with two notices raising demand for payment of Rs. 1,85,882.58p as penal interest under sub-s. (3) of S.23 of the Act for the period 20.5.1983, (the date by which the return of turnover was due to be filed accompanied by proof of