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2015 (8) TMI 1182 - MADHYA PRADESH HIGH COURTImposition of Penalty – Legality – Authority found that there was intention to evade tax and no documents were available in vehicle when vehicle was checked, therefore imposed tax and 3.5 times penalty – Appeal against said order was dismissed – Held that:- No reasons have been assigned for imposing penalty – Supreme Court in Hindustan Steel Ltd. v. State of Orissa reported in [1969 (8) TMI 31 - SUPREME Court] – Order imposing penalty will not ordinarily be imposed unless party obliged either acted deliberately in defiance of law or was guilty of conduct contumacious or dishonest – In quasi-judicial function application of mind to facts as well as to requirement of law was necessary – However authority has not assigned any reason that why penalty of 3.5 times was imposed against petitioner – It was necessary for authority to assign proper reasons in imposing penalty – Thus, imposition of tax hereby upheld, however, order of penalty set aside – Matter remanded back to authority to pass proper order in regard to penalty after considering all facts of case – Decided partially in favour of Assesse.
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