https://www.taxtmi.com/caselaws?id=158926 A discretionary penalty under section 13(5) of the Orissa Sales Tax Act must be based on objective, relevant considerations and supported by recorded reasons when the assessee's explanation is rejected. The authority cannot impose the penalty mechanically for non-payment within time. Where an appellate order later annuls or reduces the underlying assessment, the third proviso to section 13(5) requires the penalty to be refunded or proportionately reduced. The penalty order was therefore held unsustainable as passed and the matter had to be reconsidered afresh in light of the appellate order and the statutory proviso. en-us Mon, 06 Nov 1995 00:00:00 +0530 Mon, 11 Nov 2013 14:00:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=158926 A discretionary penalty under section 13(5) of the Orissa Sales Tax Act must be based on objective, relevant considerations and supported by recorded reasons when the assessee's explanation is rejected. The authority cannot impose the penalty mechanically for non-payment within time. Where an appellate order later annuls or reduces the underlying assessment, the third proviso to section 13(5) requires the penalty to be refunded or proportionately reduced. The penalty order was therefore held unsustainable as passed and the matter had to be reconsidered afresh in light of the appellate order and the statutory proviso. Case-Laws VAT and Sales Tax Mon, 06 Nov 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=158926