Mandatory tax penalty and interest apply once statutory conditions are met; mens rea and bona fide belief do not defeat liability.

Where a tax statute expressly makes penalty and interest follow objective conditions, the authority has no discretion to waive the civil consequence once those conditions are met. Under the Gujarat Sales Tax Act, failure to pay assessed or reassessed tax above the statutory threshold triggered mandatory penalty under Section 45(6) and interest under Section 47(4A). Bona fide belief, absence of mens rea, or later payment of the differential tax did not negate liability, because the provisions were treated as plain and unambiguous. Earlier authorities requiring mens rea were distinguished on materially different wording. The High Court's deletion of the levy was set aside and the tax liability was affirmed.

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Issues: Whether penalty under Section 45(6) of the Gujarat Sales Tax Act, 1969 and interest under Section 47(4A) were mandatory and leviable without proof of mens rea, and whether bona fide belief and prior payment of tax could justify deletion of the levy.

Analysis: Section 45(5) deems failure to pay tax where assessed or reassessed tax exceeds tax already paid by more than 25%, and Section 45(6) provides that a penalty shall be levied on such dealer not exceeding one and one-half times the difference. The language is treated as plain and unambiguous, leaving no discretion to the assessing authority to waive the penalty once the statutory condition is satisfied. The interest provision in Section 47(4A) operates in the same mandatory manner. The Court held that these provisions create statutory civil consequences, so mens rea, bona fide belief, or subsequent payment of the differential tax do not displace the liability. Authorities relied on to support a mens rea requirement were distinguished on the basis of materially different statutory language.

Conclusion: The penalty and interest were held to be automatically leviable on the statutory conditions being met, and the deletion of both by the High Court was set aside.

Final Conclusion: The assessment order and the appellate findings confirming penalty and interest were restored, and the assessees' liability under the relevant statutory provisions stood affirmed.

Ratio Decidendi: Where a tax statute expressly provides for automatic levy on satisfaction of specified objective conditions, the authority has no discretion to waive the civil consequence and mens rea cannot be imported unless the provision itself makes intention relevant.

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