Judgment :- RAMANUJAM, J. The petitioner is a stage carriage operator in Dharmapuri district operating five route buses. The Tamil Nadu Motor Vehicles Taxation Act, 1974, came into force on 1st April, 1974. The Act fixes the time limit for the payment of tax for every quarter and the Rules framed thereunder provide for penalty for late payment of the tax. The Act also authorises the State Government to extend or modify the dates for the payment of tax for each quarter. Whereas the Act provided that the tax in respect of each quarter for the stage carriage should be paid on or before 18th of the first month of the quarter, the State Government by G. O. Ms. 944 dt.17th April, 1974 prescribed the time for payment of the tax for quarter ending 30th June, 1974 as 50 per cent of the quarterly tax payable to be paid on or before 18th April, 1974 and the balance on or before 15th May, 1974. On the basis of the said G. O. the petitioner paid 50 per cent of the tax due in respect of his vehicles on 18th April, 1974. Subsequently due to certain unavoidable reasons the petitioner could not pay the balance of 50 per cent on 15th May, 1974. He actually paid the balance of 50 per cent on 24th May, 1974 in respect of all his buses. He also paid 25 per cent of the balance of tax paid on 24th May, 1974, as penalty prescribed under the Act and same was received by the first respondent without any objection. Later the first respondent by memo dt. 30th May, 1974 called upon the petitioner to pay the penalty at the rate of 50 per cent of the total quarterly tax payable, as he had not paid the arrears of tax due on or before 15th May, 1974. The petitioner has questioned the validity of the said memo in this writ petition. 2. According to the petitioner the first respondent is not justified in demanding penalty at the rate of 50 per cent of the total quarterly tax payable and that in law the petitioner is liable to pay only 25 per cent of the tax remained unpaid (50 per cent of the tax) as penalty for the delayed payment of the said 50 per cent of the tax. 3. 3. On a due construction of the statutory provisions and the relevant Government order Ms. 944 dt.17th April, 1974, I am inclined to agree with the contentions put forward by the petitioner. Admittedly the said Government Order permits the petitioner to pay 50 per cent of the quarterly tax on or before 15th May, 1974. This has been done. As the petitioner paid the balance of 50 per cent of the tax only on 24th May, 1974, there is delay of 9 day in making that payment, he having paid initial 50 per cent on 18th April, 1974, the due date. Admittedly the petitioner has paid penalty at the rate of 25 per cent or the defaulted amount of tax. Though this penalty was accepted initially the first respondent has later taken the view that the penalty payable by the petitioner was 50 per cent of the total quarterly tax. The question is whether this view could be justified under the statutory provisions read with the said Government Order. 4. Sec. 3, which is the charging section, provides, that tax shall be levied on every motor vehicle kept or used in State of Tamil Nadu at the rate specified for such vehicle in the schedule. Sec. 8 provides that the tax due under the Act shall be paid within such period, not being longer than 7 days or not more than 30 days from the commencement of quarter, half-year or year as may be prescribed, and that different periods may be prescribed for the different classes of motor vehicles. Sec. 20 enables the State Government by a notification for making an exemption or reduction in rate or other modification in regard to the tax payable by any person or class of persons, or in respect of any motor vehicle or class or motor vehicles and to cancel or vary such examination, reduction or other modification. It is in exercise of the power granted under S. 20 of the Act, the Government issued G. O. Ms. No. 944 dt. 17th April, 1974 providing that the tax in respect of vehicle may be paid in two equal instalments, the first instalment to be paid on 18th April, 1974 and the second on 15th May, 1974. It is in exercise of the power granted under S. 20 of the Act, the Government issued G. O. Ms. No. 944 dt. 17th April, 1974 providing that the tax in respect of vehicle may be paid in two equal instalments, the first instalment to be paid on 18th April, 1974 and the second on 15th May, 1974. Rule 8 of the Tamil Nadu Motor Vehicles Taxation Rules, 1974, which deals with penalty for non-payment of tax within the time prescribed, sets out various amounts of penalty depending upon the period of default. According to that rule if the tax is paid within 15 day after the period stipulated in S. 8, 25 per cent of the tax is to be paid as penalty. If it is beyond fifteen days, but less than forty five days, then 50 per cent of the quarterly tax has to be paid. Admittedly in this case the due date for the payment of the second instalment was 15th May, 1974 and the second instalment was paid on 24th May, 1974, 9 days after the due date. The petitioner, is therefore, liable to pay only 25 per cent of the tax as penalty. 5. The learned Government Pleader, however, contends that even if the default is taken only to be 9 days and the petitioner is liable to pay only 25 per cent as penalty, the penalty should be 25 per cent of the quarterly tax and not 15 per cent of the unpaid tax. I am not inclined to agree with learned Asstt. Government Pleader. Rules 8 is intended to cover a normal case contemplated by the Act of the quarterly tax being paid in one lump sum. But here we are concerned with a situation where in exercise of a statutory power the State Government have permitted the stage carriage operator to pay the tax in two instalments. In such circumstances, the penalty can be levied only on the defaulted instalment, and not on the entire quarterly tax, half of which has already been paid in time. In my view, the demand made in this case cannot at all be sustained. The writ petition, is therefore, allowed. There will be no order as to costs.