- (1.) HEARD Shri Praveen Kumar, Advocate on behalf of the petitioner and the Shri C.B.Tripathi, Special Counsel on behalf of the department.
(2.) PETITIONER before this Court seeks a writ of mandamus directing the respondents to pay interest on the amount directed to be refunded under the order of the Appellate Authority dated 04.10.1988, enclosed at page 44 of the present writ petition.
(3.) FACTS in short leading of the present petition are as follows : The assessee, who is engaged in confectionery business and was a registered dealer, was assessed for the year 1982 -83 and 1983 -84 under the U.P. Sales Tax Act. Under the assessment order it was held that the assessee was liable to pay tax @ 8% on confectionery items. Accordingly, the tax was deposited by the assessee. However the High Court in the case of Commissioner, Sales Tax vs. M/s. Babani and Co.,1984 UPTC 81 held that on confectionery items the rate of tax applicable would be 4% only. The assessee made an application under Section 22 of the Sales Tax Act which was allowed and it was held that the assessee was liable to pay tax @ 4% but while passing the said order under Section 22 of the Trade Tax Act, the Assessing Authority decided to proceed against the assessee under Section 15 -A (1)(QQ) of the Sales Tax Act. He imposed a penalty of Rs.1,80679/ - for the year 1982 -83 and Rs.12,565/ - for the year 1983 -84. This penalty was imposed on the ground that the assessee had charged tax at a higher rate than prescribed from its customers. The amount which had become due to be returned because of reduction of rate of tax from 8% to 4% on the confectionery items was adjusted against the penalty so levied.;