Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2021 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 592 - HC - VAT and Sales TaxLevy of Penalty u/s 53(3) of the VAT Act - Under declaration of tax - fraudulent or wilful neglect - validity of SCN - HELD THAT:- The present show-cause notice also suffers from similar infirmity. There is no indication in the show-cause notice with regard to the factual foundation alleging fraud or wilful neglect on the part of the petitioner-assessee in relation to under declaration of tax. Sri Naidu, learned Government, sought to wriggle out of the situation by referring to the finding of the authority relating to absence of plausible explanation for non-disclosure of turn over by the assessee as the foundation for wilful neglect - The initial onus was on the department to aver the factual foundation of fraud or wilful neglect in the show-cause notice. Only then the petitioner-assessee would have been put on adequate notice to respond to such allegation, which may entail higher penalty. In the absence of allegation of fraud or wilful neglect in the show-cause notice, the question of offering any explanation on such score did not arise. The authority wholly misdirected itself in imposing higher penalty on the premise the assessee had failed to give plausible explanation for non-disclosure of turn over - We are constrained to hold as the petitioner-assessee was not put on adequate notice with regard to imposition of higher penalty and therefore, had no opportunity to respond thereto the impugned penalty order based on lack of plausible explanation on such score suffers from jurisdiction error and falls foul of principles of fair procedure and natural justice. Petition allowed - penalty set aside.
|