Mandatory minimum penalty for delayed Foreign Travel Tax remittance upheld; mens rea not required for levy.

Minimum penalty for delayed remittance of Foreign Travel Tax was treated as mandatory under the Foreign Travel Tax Rules, 1979 and the Finance Act, 1979. Applying the earlier binding precedent, the High Court noted that proof of mens rea was not required for imposing penalty in such matters. The petitioner's authorities were distinguished on facts and held inapplicable, and the admitted delay in remittance of tax collected for the Government justified the levy of the minimum penalty.

---

---

Issues: Whether penalty for delayed payment of Foreign Travel Tax was exigible without proof of mens rea and whether the minimum penalty prescribed under the governing provisions was mandatory.

Analysis: The petition challenged the revisional order confirming short-payment, interest and minimum penalty for delayed remittance of Foreign Travel Tax. The governing provisions under the Foreign Travel Tax Rules, 1979 and the Finance Act, 1979 were applied in the light of the earlier binding decision holding that mens rea is not a prerequisite for imposition of penalty in such matters and that the minimum penalty provision operates mandatorily. The authorities relied upon by the petitioner were treated as distinguishable on facts and not applicable to the present controversy. In view of the admitted delay in remittance of tax collected for the Government, the imposition of minimum penalty was found justified.

Conclusion: The challenge to the levy of minimum penalty failed and the penalty was upheld.

Ratio Decidendi: Where the statute provides for minimum penalty for delayed payment of Foreign Travel Tax, proof of mens rea is not necessary and the prescribed penalty is mandatory.

---