Penalty appeal remains maintainable after tax payment, and the appellate authority must hear it on merits.

An appeal challenging only the penalty portion of an assessment order could not be rejected as not maintainable merely because the tax component had already been discharged. Where the petitioner had paid the entire tax liability and sought review only of the penalty, the appellate authority was required to entertain the appeal, afford a hearing, and decide the matter on merits. The intimation rejecting the appeal was therefore set aside, and the appeal was directed to be taken on record and disposed of in accordance with law.

---

---

Issues: Whether the appeal filed against the penalty portion of the assessment order could be rejected as not maintainable after the tax liability had already been discharged.

Analysis: The petitioner had paid the entire tax component and challenged only the penalty imposed in the assessment order. The rejection of the appeal on the ground that penalty alone could not be challenged was found unsustainable. In these circumstances, the appellate authority was required to entertain the appeal and decide it on merits after affording an opportunity of hearing.

Conclusion: The intimation rejecting the appeal was set aside and the appellate authority was directed to take the appeal on record and pass orders on merits in accordance with law.

---