Discretionary Power

If the penalty to be imposed for failure to perform statutory obligation is a matter of discreation of the authority, the discreation will be exercised with reason and not arbitrarily and after consideration of all the relevant circumstances of the case. Even if a minimum penalty is prescribed, the authority competent to impose the penalty will be justified in ignoring the penalty where there is only a technical breach of the provisions of the Act. 
(Hindustan Steel Lid. vs. State of Orissa (1972) 83 ITR 26 (SC) )
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