(1)A person who fails to pay tax as per any order passed under this Act on or before the due date is liable for penalty of an amount equal to interest @ 15% per annum or such higher/lower rate as the Government may notify from time to time.(2)If a person pays penalty under sub-section (1) and the tax to which it relates is found not to have been due and payable by the person and/or is refunded, then so much of the penalty as relates to the amount of the refund shall also be refunded to that person and when the tax is found not to have been due or payable the penalty shall also be proportionately reduced.
