2015 (5) TMI 372

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....VEERAPPA, JJ. For The Appellant : Sri Jeevan J. Neeralagi, Advcate., Sri Y. Hariprasad, Advocate For The Respondent : Sri B.N. Gururaj, Advocate, Sri K. Parameshwaran, Advocate JUDGMENT N. Kumar, J. - In all these appeals, a common question of law is involved. Therefore, they are taken up together for consideration and disposed of by this common order. 2. The question involved is....

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....f penalty is automatic. There is no scope for any discretion. The levy of penalty is mandatory. After laying down the said law, the judgments of the High Court were set-aside and the matters were remanded back to the High Court for fresh disposal in the light of the aforesaid judgment. After the judgment in Dharamendra Textile Processors (supra) case, in almost every case relating to penalty, the ....

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....e must therefore, be understood to mean that though the application of Section 11AC of the Act would depend upon the existence or otherwise of the conditions expressly stated in the Section, once the Section is applicable in a case, the concerned authority would have no discretion in quantifying the amount of penalty. It must be imposed equal to the duty determined under Sub-Section (2) of Section....

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....aw. 6. Insofar as the payment of interest is concerned, in view of Sections 11AA and 11AB of the Act, the payment of interest has become automatic. However, the question which arises for consideration is, "what is the rate of interest to be charged?" That depends upon the notification issued from time to time. Therefore, the matter is remanded back to the original authority to decide the rate o....