SWAMIKKANNU, J.


This is a petition for the issue of a writ of certiorari to call for the records from the file of the respondent relating to the notice of demand in R.C. No. 2998/81-B2 dated 21st November, 1983 and quash the same. It is, inter alia, stated in the affidavit accompanying the writ petition sworn to by the manager of the petitioner, National Sugar Industries, that the penalty demand made in the impugned notice relates to the Central Sales Tax Act, 1956, paid by the petitioner to the respondent, that the petitioner is a small-scale industry dealing in fabrication of metals and other engineering items, that the petitioner has been assessed by the respondent to pay the sales tax under the Central Act for the assessment year 1977-78, that the petitioner has paid the sales tax to the tune of Rs. 10, 352 levied by the respondent in full, that the said payment was made belatedly that according to the respondent, there is a delay of 50 months in the payment of sales tax due under the Central Act for the year 1977-78 and that the reason for the delay is that the finished product is delivered to the petitioner's customer and a period of 90 days credit is allowed in respect of the invoice raised for such supply. Quite often it happens that every such purchaser seeks a further credit period of not less than 90 to 120 days for making payments to the petitioner. The bill amount referred to above includes the amount of sales tax leviable in respect of the quantity of supply made under the bill. Consequently, the petitioner does not receive the bill amounts from its customers in time. On several occasions the petitioner is driven to the painful necessity of resorting to court for recovering the bill amounts from its customers. Many a time, the cheques issued by the customers of the petitioner towards the outstanding bill amount are dishonoured on presentation by the petitioner. The 1st respondent has issued a demand notice dated 21st November, 1983 in R.C. No. 2998/81 calling upon the petitioner to pay the penalty amount of Rs. 10, 352. According to the demand notice, the said amount of penalty is in respect of the tax dues of the year 1977-78. The total tax for the year 1977-78 under the Central Act worked out to Rs. 10, 352 and the petitioner has paid the same in full. According to the respondent, there is a delay of 50 months in paying the Central sales tax dues for the year 1977-78. The delay thus caused is mainly due to the unavoidable and unforeseen circumstances set out above.


2. The point for consideration is, whether the relief prayed for by the petitioner can be granted or not ?


3. Mr. R. Lokapriya, learned Government Advocate (Taxes) for the respondent, refers to the decision in Khazan Chand v. State of Jammu and Kashmir 1984 AIR(SC) 762, 1984 (56) STC 214, 1984 (1) Scale 264, 1984 (2) SCC 456, 1984 (2) SCR 858, 1984 UJ 394, 1984 TaxLR 2841 for the following proposition that the penalty interest levied under section 9(2) can be recovered under section 24(3) of the Tamil Nadu General Sales Tax Act, 1959 as one well within the principles of law. Therefore, the prayer of the petitioner cannot be granted. Interest ought to have been paid by the petitioner herein and this levy of penal interest is leviable on the basis of section 9(2) of the Central Sales Tax Act which can be recovered under section 24(3) of the Tamil Nadu

General Sales Tax Act. It is only this procedure which has been resorted to by the respondent in sending the notice. There is no infirmity in the proceedings demanding penal interest. Hence, there is no merit in the writ petition. The writ petition is dismissed. But, under the circumstances of the case, there will be no order as to costs. Writ Petition dismissed.