2003 (7) TMI 673 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Violation of principles of natural justice
2. Legality of penalty imposition without proper notice and hearing
3. Compliance with statutory provisions under Section 45-A of the Madhya Pradesh Commercial Tax Act, 1994
4. Maintainability of the petition in light of alternative remedies

Issue-wise Detailed Analysis:

1. Violation of principles of natural justice:
The judgment emphasizes the fundamental principle of "audi alteram partem" (no one should be condemned unheard). The petitioner argued that the penalty was imposed without proper notice and hearing, violating natural justice principles. The court highlighted that the Assistant Commissioner acted in haste by issuing show cause notices and passing orders without allowing sufficient time for the petitioner to respond. The court reiterated that justice should not only be done but be seen to be done, emphasizing the need for a fair hearing and proper inquiry.

2. Legality of penalty imposition without proper notice and hearing:
The petitioner contended that the penalty orders dated June 6, 2003, and June 13, 2003, were passed without waiting for the scheduled hearing on June 11, 2003. The court found that the show cause notices did not specify allegations adequately, making them vague and improper. The court cited the Supreme Court's principles in Commissioner of Sales Tax v. Subhash and Co., emphasizing that non-issue or defective service of notice affects jurisdiction and reasonable opportunity of being heard. The court concluded that the penalty imposition without proper notice, inquiry, and hearing was illegal.

3. Compliance with statutory provisions under Section 45-A of the Madhya Pradesh Commercial Tax Act, 1994:
The court analyzed Section 45-A, which mandates that transporters must deliver a declaration form before crossing check-posts. The petitioner failed to produce the required Form No. 75. The court noted that the Check-post Officer must follow a detailed procedure, including issuing show cause notices, recording reasons, and providing an opportunity for hearing before imposing penalties. The court found that the Assistant Commissioner did not comply with these statutory requirements, acting in violation of the law and principles of natural justice.

4. Maintainability of the petition in light of alternative remedies:
The respondent argued that the petition was not maintainable due to the availability of alternative remedies such as appeal and revision. The court held that when an order is illegal and void, it can be examined under writ jurisdiction, irrespective of alternative remedies. The court found that the Assistant Commissioner violated statutory provisions and principles of natural justice, justifying the petition's maintainability under Articles 226/227 of the Constitution of India.

Conclusion:
The court concluded that the orders imposing penalties were passed in violation of the principles of natural justice and statutory provisions. The court set aside the impugned orders and directed the concerned authority to conduct a de novo inquiry, issue specific show cause notices, provide adequate time for response, and ensure a fair hearing. The court also directed the authority to consider applications for releasing the goods and vehicles on adequate security and ensure their safe custody. The petition was disposed of with these directions, emphasizing the need for judicial, independent, and unbiased action by the authority.