Penalty on late return filing upheld where dealers accepted deposit as penalty and sought formal levy order.

Dealers' deposit made on restoration of registration was treated as penalty for late filing of returns because the dealers ed that characterization and sought a formal penalty order for the same amount. On that basis, the Tribunal's reduction of penalty was set aside, the appeals were permitted to be withdrawn, and the competent authority was directed to issue a formal order levying the penalty for the amount already deposited within the stipulated time. The challenge to the reduced penalty therefore did not survive.

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Issues: Whether the amount deposited by the dealers at the time of restoration of registration could be treated as penalty and whether the Tribunal's order reducing the penalty required interference.

Analysis: The dealers accepted the amount already deposited as penalty for late filing of returns and requested that a formal order be passed imposing penalty of the same amount. In view of this stand, the appeals before the Tribunal were permitted to be withdrawn and the Tribunal's order reducing the penalty was set aside. The Court directed the competent authority to pass a formal order levying the penalty for the amount already deposited within the stipulated time.

Conclusion: The challenge to the Tribunal's reduction of penalty did not survive, and the deposited amount was to be treated as penalty subject to a formal order by the authority.

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