V. K. SINGHAL, J. - (1.) IN this revision petition, the assessing authority has raised the following two question of law arising out of the order of the Tribunal dated June 1, 1988 : 1. Whether, in the facts and circumstances of the case, interest under section 11b was payable on the amount of penalty ? 2. Whether, in the facts and circumstances of the case, by virtue of the said order no interest was payable on decision of the appeal and revision petition ? Brief facts of the case are that a penalty of Rs. 16,324 was imposed on the assessee under section 10a of the Central Sales Tax Act, 1956, on June 17, 1980. The said demand was deposited on October 1, 1985 and the demand being deposited late by 63 months, interest of Rs. 14,124 was levied. The appeal preferred by the assessee before the Deputy Commissioner (Appeals) was rejected. When the matte was taken up before the Sales Tax Tribunal, it was found that the demand was under stay during the pendency of appeal and revision and as such it was held that interest was not leviable.
(2.) THE provisions of section 11b of the Rajasthan Sales Tax Act, 1954, were amended by Act No. 4 of 1979 with effect from April 7, 1979. Section 11b (2) and (3) reads as under : " 11b (2) Where any amount of tax, fee, interest or penalty is demanded from a dealer as a result of an order passed in any proceedings under this Act (including assessment, appeal, revision, rectification or otherwise) and such tax, interest or penalty, is not paid by such dealer within the time required by or under the provisions of this Act, he shall be liable to pay interest at the rate of two per cent per month on the amount of tax or interest or penalty from the date of expiry of such time until the date of payment of such amount. (3) Where as a result of any order under this Act, the amount on which interest was payable under this Act, has been reduced, the amount of interest shall be reduced accordingly and the excess interest paid, if any, shall be refunded. " The demand in the case was created in respect of penalty on June 17, 1980, when the above provisions were amended and, therefore, it was only the amended provisions, which were applicable to the facts of this case. In accordance with the provisions of sub-section (2) of section 11b if any amount of tax, fee, interest or penalty is demanded, which is not paid by the assessee within the time required, then he is liable to pay interest. The reliance which has been placed by the Tribunal, appeals to be misconceived, inasmuch as once a demand is created in respect of any tax, interest, fee or penalty and a demand notice is served on the assessee then interest is payable if the said demand is not paid paid within the time mentioned in the demand notice. Simply because there was a stay, it cannot be said that the demand was not payable. It was not enforceable and for the purpose of recovery only it was suspended temporarily during the pendency of appeal. Ultimately, the appeal was dismissed and bar of recovery automatically came to an end. The grant of stay cannot be interpreted to mean that the interest is not payable for the period during which the demand remained stayed. In these circumstances, I am of the view that the Sales Tax Tribunal was not justified in coming to the conclusion that interest was not livable. Accordingly, the revision petition is allowed and the order of the Sales Tax Tribunal is quashed. No order as to costs. Petition allowed. .;