Concurrent penalties under Sections 76 and 78 may both apply where the same default attracts each provision.

Penalty under Sections 76 and 78 of the Finance Act are treated as operating in distinct fields, so both may be imposed for the same default where the conduct attracts each provision. The Tribunal followed the binding view that deletion of the Section 76 penalty was unjustified merely because the Section 78 penalty had also been sustained and partly paid. On that basis, the relief granted by the Commissioner (Appeals) was set aside and the Section 76 penalty was held to remain imposable in addition to Section 78.

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Issues: Whether penalty under Section 76 of the Finance Act was leviable when penalty under Section 78 of the Finance Act had also been imposed for the same period and conduct.

Analysis: The only substantive question was the coexistence of penalties under Sections 76 and 78. The Tribunal followed the binding view that these penalties operate in distinct fields and can be imposed separately, even where the default arises out of the same transaction. On that basis, the Commissioner (Appeals) was not justified in deleting the penalty under Section 76 merely because penalty under Section 78 had been sustained and partly paid.

Conclusion: Penalty under Section 76 was held to be imposable in addition to penalty under Section 78, and the relief granted by the Commissioner (Appeals) was set aside.

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