MALIMATH, C.J.

The learned single Judge has referred this case to the Division Bench as it involves an important question of law. The question of law that arises for consideration in this case is as to whether a dealer under the kerala General Sales Tax Act (hereinafter referred to as the Act) incurs liability to pay penalty under sub-section (3) of section 23 of the Act on his failure to pay the tax amount on the basis of the return filed by him under sub-rule (1) of rule 18 of the Kerala General Sales Tax Rules (hereinafter referred as the Rules).

2. Sub-section (3) of section 23 of the Act which is relevant for our consideration, may be extracted as follows :

"If the tax assessed or any other amount due under this Act, or any installment 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 or within the time specified therefor in this Act or in any rule made thereunder, the dealer or other person shall pay, by way of penal interest, in the manner prescribed, in addition to the amount d