Ahmadi, J. - (1.) 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 dealer fails to submit a return or fails to deposit tax as required by S. 7(2A). Section 7AA prescribes the penalty for failure to furnish the returns. According to Section 10 the assessment and determination of tax due for any year, shall be made after the returns for all the periods of that year have become due Section 11 B makes provision for charging interest on failure to pay tax, fee or penalty. Clauses (a) and (b) of the said Section 11-B before its substitution by Act 4 of 1979 w.e.f. 7th April, 1979 read as under: "11B. Interest on failure to pay tax, fee or penalty:- (a) If the amount of any tax payable under sub-sections (2) and (2A) of the Section 7 is not paid within the period allowed, or (b) If the amount specified in any notice of demand, whether for tax, fee or penalty, is not paid within the period specified in such notice, or in the absence of such specification, within 30 days from the date of service of such notice, the dealer shall be liable to pay simple interest on such amount at one per cent per month from the day commencing after the end of the said period for a period of three months and at one and a half per cent per month thereafter during the time he continues to make default in the payments." (The two provisos are not material for our purpose.)
(3.) The Rajasthan Sales Tax Rules, 1955 hereinafter called 'the Rules', provide in Chapter VII for the filing of returns, etc. Rule 25 provides that the return referred to in Section 7(l) shall be in Form ST 5 and shall be signed by the dealer or his agent. The said return has to be filed for such quarters ending with the last day of the months of June, September, December and March of every assessment year if the 'previous year' of the dealer ends on 31st March of any year, and in other cases for each of the quarters of the year of accounts of the dealer. The rule further provides that if the return is not accompanied by a receipt showing deposit of tax as required by Section 7(2), the Assessing Authority shall not be bound to take cognizance of the return. If we turn to Form ST 5 we find that column II thereof requires the dealer to indicate the turnover for the concerned quarter and permits certain deductions enumerated therein. The return has to be verified in the manner indicated at the foot of the form. It was, therefore, contended on behalf of the Revenue that a conjoint reading of Section 7 and Rule 25 clearly brings out that the dealer or his agent is under an obligation to file a true and complete return and hence the failure to deposit the tax due on the turnover as determined on final assessment would entail liability to pay interest. It may be noted that Section 26(5) of the Act makes all rules made under the said provision and duly published in the Gazette to form part of the Act itself on such publication.;