TMI Blog2005 (8) TMI 653X X X X Extracts X X X X X X X X Extracts X X X X ..... osited with the returns. The petitioner filed his show cause treating the same to have been issued under sub-section (3) of section 69. The assessing officer by the impugned order imposed the penalty by computing the tax component by four times. The assessee preferred a revision but the revisional authority came to hold that the assessing officer had passed the order under section 69(2) and not under section 69(3) of the Act and hence, there was no error in the order. Mr. Nema, learned counsel for the petitioner has contended that the notice to show cause was confusing inasmuch as though certain amount was mentioned an impression was given that 80 per cent was not deposited. It is put forth by him that sub-section (3) of section 69 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nalty under this section. (2) The proceeding under sub-section (1) shall be initiated by the Commissioner or the appellate or revisional authority as the case may be, by issue of a notice in the prescribed form for giving the dealer an opportunity of being heard. On hearing the dealer, the Commissioner or the appellate or the revisional authority as the case may be, shall pass an order not later than one calendar year from the date of initiation of such proceeding or within such further time as allowed by the State Government, directing the dealer that, he shall in addition to the tax payable by him pay by way of penalty a sum which shall not be less than three times but shall not exceed five times of the amount of tax evaded. (3) If ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o penalty but has a spacious observation that the penalty was imposed on the basis of the assessment. In my considered view, the said order is vulnerable and affirmation thereof by the revisional authority is also susceptible and accordingly, the said orders are quashed. However, it is open to the assessing officer to proceed in accordance with law from the stage of issue of show cause. To elaborate: no further show cause shall be issued, as the petitioner is presently aware that the notice to show cause is under section 69(2) of the Act. The petitioner shall file his show cause within a period of thirty days from the date of receipt of the order passed today and the assessing officer shall proceed in accordance with law. The writ petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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