Section 16(2) in The Central Sales Tax (Orissa) Rules, 1957
(2)Where a dealer fails to make payment of the tax assessed, interest payable or penalty imposed or any other amount due from him under the Act or these rules within the date specified in the notice in Form VII, the assessing authority may impose penalty equal to two per centum of such amount of tax, interest, penalty or any other amount due and serve a notice in Form VIII directing the dealer to pay the penalty together with sums previously due by a date to be fixed in the notice and to produce the proof of payment by a date to be specified in the said notice:Provided that where any appeal or revision under the Act or the rules made thereunder has been filed,-(i)such penalty shall be payable from the date so specified on the amount ultimately found due from the dealer; and(ii)if the tax or penalty, if any, is enhanced in such appeal or revision, such penalty on the excess amount shall be payable from the date by which the dealer is required to pay such excess amount:Provided further that where the collection of the amount specified in the notice of demand in Form VII or any part thereof has been stayed on appeal or revision, penalty may be levied if such amount is not paid and proof of such payment is not produced before the Asst. Commissioner or Sales Tax Officer, as the case may be, within a fortnight after expiry of the stay period:Provided also that where stay on collection until disposal of appeal or revision has been ordered, the stay period shall be deemed to have expired on the date of disposal of such appeal or revision and where in such cases, the appeal or revision result in a reduction or enhancement in the amount of demand, a revised notice of demand in Form VII shall be issued directing the dealer to make payment in accordance with such revised notice within fourteen days from the date of service of the notice and to produce the proof of payment thereof within seven days from the date of payments and no penalty shall be imposed until the expiry of the time limit specified in the revised notice of demand.
