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l. The word 'penalty' has been used in the context of offence, even in the IPC and CrPC and does not automatically indicate that it is in the nature of civil liability. There is nothing in "tax jurisprudence" or any case law which specifically states, as a rule of law, that 'penalty' must necessarily relate to a civil liability. The character of the penalty, whether civil or criminal, will depend on the context, language, legislative intent and statutory structure. Penalty also has been defined in sixth edition of Pramanatha Aiyar's Law Lexicon which states that penalty can be punishment in taxation matters as it may attract civil liability or criminal liability. It is open to Parliament to prescribe punishment by way of imprisonment or fine or even a penalty, but whether its levy is in consequence either of a prescribed offence or of breach of other provisions that are not characterized as offences. A breach of law can attract both penalty by the adjudicated mechanism, that is, the department and imposition by the prosecution mechanism, that is, criminal courts. Learned Senior Advocate submitted that penalty means punishment and also drew the attention of this Court towards the definition of 'Penalty' as cited in Corpus Juris Secundum (Volume 85, para 580, para 1023) which is reproduced herein below as:

Meaning of 'Offence' and 'Penalty'

10. For the purpose of understanding, it is necessary to first deal with regard to the meaning of the words 'offence' and 'penalty' as used in Section 122 of the CGST Act. The myriad definitions of the words 'offence' and 'penalty' as given in Black's law dictionary, P Ramanatha Aiyar's, The Law Lexicon are quoted herein below:

Definition of 'Offence'

(i) Definition of 'Offence' as per Black's Law Dictionary (9th Edition, page 1186) is quoted in verbatim as under:

"A violation of the law; a crime, often a minor one.

The terms 'crime', 'offence' and 'criminal offence' are all said to be synonymous, and ordinarily used interchangeably. 'Offense' may comprehend every crime and misdemeanor, or may be used in a specific sense as synonymous with 'felony' or with 'misdemeanor' as the case may be, or as signifying a crime of lesser grade, or an act not indictable, but punishable summarily or by the forfeiture of a penalty."

(ii) The word 'Offence' as has been defined in P Ramanatha Aiyar's 'The Law Lexicon' (4th Edition, page 1316) is quoted in verbatim as:

(iv) The word 'Penalty' as has been defined in P Ramanatha Aiyar's, 'The Law Lexicon' (4th Edition, page 1404) is quoted in verbatim as herein below:

"The term 'penalty' is used very loosely in statutes in some cases, and might, without being much strained from its ordinary meaning, be held to embrace all the consequences visited by law on the heads of those who violate police requirements."

*** "A punishment imposed for any breach of law, rule or contract a sum named in a bond as the amount to be forfeited by the obligor in case he does not comply with the conditions of the bond; money recoverable by virtue of a penal statute; a sum agreed to be paid on breach of an agreement or some stipulation in it."