Madras HC says Tax Demand Already Paid Does Not Make Appeal Penalty-Only

The adjudication order against Kappa Chakka Kandhari confirmed tax, interest and an equivalent penalty under Section 74(9), while recording that the tax and interest had already been paid. Since the order itself involved a tax demand, the special 10% pre-deposit requirement applicable to a penalty-only order was held inapplicable. The appeal was therefore restored for adjudication on merits.