The main legal point established in the judgment is that the accrual of penal interest is automatic on the occurrence of defaults, and there is no provision in the Sales Tax Act enabling the Government to pass an order allowing the benefit of installment payment to an assessee.

1. The writ petitioner/ appellant was an assessee to Sales Tax from whom arrears of Sales-tax were due in respect of assessments for the years 1970-71 to 1973-74. The arrears amounted to Rs. 1,07,667/-. He seems to have approached the Government for permission to pay up the arrears in instalments and Ext. P2 order dated 910 72 was passed by the Secretary to Government of the Revenue Department allowing him the facility of instalment payment of Sales Tax and Employees Provident Fund at the rate of Rs. 5000/- each (total monthly payment of Rs. 10,000/-). The petitioner has averred that the instalments as permitted by Ext. P2 order were paid from 1972 and the arrears were liquidated by July 1974. He has produced Ext. P3 statement showing the payments made and the dates on which they were made. The averments made in this respect have not been controverted. Exts. P4 to P7 orders were passed by the Sales Tax Officer imposing penalty on the writ petitioner for default of payment of the arrears of Salestax. Ext. P4, as penalty of Rs. 11.091.98 was imposed by order dated 29-11-73. Ext. P5 is dated 12-11-74 and imposed a penalty of Rs. 5,479.42. Ext. P6 is dated 9-11-74 and the penalty imposed was Rs. 5,184.46. Ext. P7 is dated 18-11-74 and the penalty imposed was Rs. 1.313.17. Ext. P4 order was carried up in revision and dismissed by Ext. P8 dated 27-2-75. The writ petition which has given rise to this appeal was preferred to quash Exts. P4 to P8 and for consequential reliefs. The learned judge observed in the first paragraph of the judgment that Ext. P9 was the petition for stay filed by the petitioner in revision and Ext. P10 is the order thereon, by which the stay petition was rejected and that the writ petition was to quash Ext. P10 order. This is a mistake, as the petitioner prayed clearly to quash Exts. P4 to P7. The learned judge disposed of the writ petition in the following fashion:

"3. Neither party is in a position to affirm whether the revisions are still pending. If the revisions have been disposed of no relief need be granted to the petitioner in regard to Exts. P5 to P7. The petition will stand dismissed. In case the revisions have not been disposed of yet, then the revisions may be disposed of expeditiously and until such disposal of the revisions against Exts P5 to P7 orders status quo as to collection of penalty thereunder will continue.

4. There is a challenge to Ext. P8 order. That it is time barred is evident and the petitioner has no answer to the plea that it is time barred. Hence the challenge to Ext. P8 cannot succeed."

The challenge to Ext. P8 order is time barred. But Exts. P5 to P7 revisions were dismissed on 26-7-75 communicated on 18-8-75. Limitation or delay and laches, are not urged against these orders,

2. Counsel for the petitioner contended that in view of Ext. P2 order which was duly complied with, the penalty was not imposable at all, and that Exts. P4 to P7 orders cannot therefore be sustained. It was also represented that by the time of the learned judge's judgment, the revisions against Exts. P5 to P7 had been dismissed by order dated 26 71975 communicated on 18-8-75. The answer made on the side of the learned Government Pleader was that Ext. P2 order of the Government is not an order statutorily sanctioned or recognised, and therefore the same cannot avail the petitioner against the liability to pay penal interest or the penalty. We may note the provisions of S.23(3) and S.24 of the Sales Tax Act:

"23. Payment and recovery of tax.

(3). If the tax assessed or any other amount due under this Act or any instalment thereof is not paid by any dealer or other person within the time specified therefor in the notice of demand or in the order permitting payment in instalments or within the time allowed for its payment by the appellate or revising authority, the dealer or other person shall pay, by way of penal interest, is the manner prescribed, in addition to the amount due, a sum equal to

(a) one