Nothing in section 38 or 41 shall affect any proceeding under this section.

Imposition of penalty and levy of interest

1. (1) If, while assessing or reassessing the amount of tax due from a '[proprietor] under any provisions of this Act or while passing any order in any appeal, revision, review or rectification proceedings, it appears to the Commissioner that such [proprietor] has:—
   • (a) failed - to apply for registration as required by section 8 or has carried on business, without being registered, in contravention of section 8; (b) failed to disclose any transaction or receipt or has failed to furnish return by the prescribed date or has failed to show in the return the appropriate liability to pay tax or has failed to disclose fully and truly all material facts necessary for the proper and correct quantification of the tax liability, then the Commissioner may, after giving the '[proprietor) an opportunity of being heard, by order in writing impose upon the '[proprietor] by way of penalty, in addition to any tax assessed or reassessed or found due in the appeal or revision or rectification proceedings, as the case may be: (i) in the case covered by clause (a), a sum not exceeding the amount of the tax payable by the l [proprietor] for the period during which he carried on business, without being registered, in contravention of section 8; (ii) in the case covered by clause (b), a sum not exceeding the amount of tax found payable under the said clause.
2. (2) If a l [proprietor]:— (a) does not pay the tax within the time he is required by or under the provisions of this Act to pay if, or
   • (b) is found liable to pay tax under the provisions of clause (b) of sub-section (1), then, without prejudice to the provisions of sub-section (1), he shall be liable to pay simple interest at the rate of two per cent of the amount of such tax for each month after the last day by which he should have paid such tax:

1 Substituted for "hotelier" by the Delhi Tax on Luxuries (Amdt.) Act, 2012, dt. 19-6-2012, w.e.f. 9-8-2012.

SECTION 18 THE DELHI TAX ON LUXURIES ACT, 1996 11 PROVIDED that, the Commissioner or any appellate authority may, for reasons to be recorded in writing, remit the whole or any part of the interest payable in respect of any period.