Tax, fees, duties, cess etc. are the revenues for the Government. In fact, they are the oxygen to the Government. Without the income, by way to tax, fees, etc., no Government can survive. More particularly, ours is the socialistic and welfare country.
To achieve the goal of socialism, and to implement the objects of the Constitution, the Governments (Central and State) require huge money. Tax, fees, duties, cess, etc. are the proper means to procure revenue. Part-XII of the Constitution lays down the provisions for the distribution of revenue between Centre and States No other federal countries have no such proper arrangements in the world.
“Fine” shall be imposed on the defaulter, who fails to pay tax, fees, duty, cess, etc. voluntarily or accidentally. Every statute imposing tax, fees, duties, cess, etc. imposes certain fines on the defaulting parties, and also gives the time to pay within the period.
ADVERTISEMENTS:
Certain Acts, Income Tax Act, Wealth Tax Act, etc. there are also severe punishments, i.e. imposing imprisonment on the defaulter/wrong-doer. Fine serves as a check valve and watch dog upon the assessee/person. It threats a person. It saves a person from evading the payment of tax, fees, duties, cess, etc. who pays the tax, fees, etc. in time, no fine shall be imposed.