T.L. Viswanatha Iyer, J.

This case was referred for decision by a Division Bench having regard to the importance of the question of law raised therein. The challenge is to the demand for penal interest made under S.23(3) of the Kerala General Sales Tax Act, 1963 ( "the act" ), in relation to the assessment year 1975-76. The original order of assessment which was made on the petitioner made a demand for an amount of Rs. 9,806.80 towards tax and Rs. 491.12 towards surcharge. This order of assessment dated December 20,1976 and which was served on the petitioner-assessee on February 18, i977, was modified in appeal by the Appellate Assistant Commissioner by his order dated December 30, 1980. Thereunder there was a reduction made in the quantum of addition made to the turnover and the assessing authority was directed to modify the assessment accordingly. The revised order of assessment is dated August 31, 1981. The demand for tax got reduced to Rs. 7,710.36 and surcharge to Rs. 386.27. Copies of the revised order of assessment and of the notices of demand consequent thereto, which were received by the assessee on October 30, 1982, are exhibits P2, P3 and P4 respectively.

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