Judgment

AHMADI, J.:- These appeals by special leave are directed against certain assessment orders made by the Commercial Taxes Officer relating to the assessment years 1975-76, 1976-77 and 1977-78 under the Rajasthan Sales Tax Act, 1954 (hereinafter called the Act) and the Central Sales Tax Act, 1956 (hereinafter called the Central Act). The question relates to payment of interest on tax on the amount of freight charged in respect of sale of cement under the relevant Cement Control Order. The returns were filed by the appellant on the premises that the amount of freight charged in respect of sale of cement under the said Control Order did not form part of the sale price for the payment of sales tax. The appellant contends that it had raised the contention bona fide but the same was rejected by this Court by its judgment and order dated August 22, 1978 in the case of Hindustan Sugar Mills Ltd. v. State of Rajasthan and J. K. Synthetics Ltd. v. C.T.O., Kota, 43 STC 13. By the said decision this Court held that the freight element formed part of the price of cement and sales tax was leviable on the sale price inclusive of the freight amount. The appellant was, therefore, required to pay sales tax on the sale price inclusive of the freight. There is now no dispute on the question of computation of the sale price for calculating the sales tax. The dispute now is limited to whether the appellant is required to pay interest on the additional sales tax which had to be paid on the inclusion of the freight amount in calculating the sale price. According to the appellant interest under Section 11-B of the Act can only be charged for the period subsequent to the determination of sales tax under the final assessment and that too after the expiry of the period allowed under the Notice of Demand issued on finalisation of the assessment. This contention of the assesses is countered by the Revenue. According to the latter, interest becomes payable from the date on which the original return was filed under Section 7(2) or 7(2A) of the Act, as the case may be. The assesses supports its contention on the decision of this Court in State of Rajasthan. v. V. Ghasi Lal, 16 STC 318, whereas the Revenue places reliance on the decision rendered by this Court in Associated Cement Company v. C.T.O., 48 STC 466, wherein it was held that where a return is filed under S. 7(2) of the Act, interest runs from the date of filing of the return. The assessee, however, seeks to distinguish it on the ground that the case related to deposit of differential tax under Section 7(2A) of the Act. We will, therefore, be required to interpret Sections 7(2), 7(2A) read with Section 11-B of the Act and Section 9(2) of the Central Act and the ratio of the decisions on which reliance has been placed.

2. Under the Act by virtue of the charging Section 3 the liability to pay tax arises. Section 5 prescribes the rate of tax. Section 7(l) provides that every dealer liable to pay tax shall furnish returns of his turnover for the prescribed periods in the prescribed form and in the prescribed manner within the prescribed time, to the assessing authority. Section 7(2) says that every such return shall be accompanied by a treasury receipt or receipt of any authorised bank showing the deposit of the full amount of tax due on the basis of the return in the Government Treasury or bank concerned. Sub-section (2A) added to Section 7 by Rajasthan Act 13 of 1963 with effect from 29th April, 1963, empowers the State Government notwithstanding sub-section (2) to require any dealer or class of specified dealers to pay tax at intervals shorter than those prescribed under sub-section (1) in which case the dealer will deposit the tax at such shorter intervals. Such deposit of tax shall, under S. 7(4), be deemed to be provisional, subject to necessary adjustments in pursuance of the final assessment of tax. Section 7A enjoins the making of a provisional assessment on best judgment basis if the deale