Delhi HC says Pre-SCN Payment Can Limit Penalty Exposure

The Delhi High Court disposed of Shree Ram Metal Industries’ writ petition in terms of its earlier decision in Delhi Sales Corporation. The underlying ruling distinguished the pre-notice payment mechanism under Section 74(5) from payment after issue of notice under Section 74(8). It directed that, upon deposit of 15% of the penalty amount within four weeks, the impugned order would be quashed insofar as the petitioner was concerned.