2008 (1) TMI 840 - HC - VAT and Sales Tax

Summary

Issues: Challenge against orders levying penalty under section 45A of the Kerala General Sales Tax Act, 1963 based on violation of principles of natural justice.

In the present case, the challenge in the writ petitions is against orders (exhibits P3, P5, and P6) passed by the first respondent, imposing penalties on the petitioners under section 45A of the Kerala General Sales Tax Act, 1963. The main contention raised by the petitioners is the violation of principles of natural justice. The petitioners argued that the penalties were imposed without disclosing the reports relied upon, despite their requests for disclosure. The notices issued to the petitioners contained only reference numbers of the reports without disclosing their contents, leading to a clear violation of natural justice principles.

The petitioners in two separate cases had requested disclosure of the reports relied upon against them, which was denied by the first respondent. The learned Government Pleader defended the orders by stating that the contents of the reports had been disclosed to the extent necessary. However, the court found that the mere reference numbers provided in the notices were not sufficient disclosure of the materials relied upon. As a result, the court held that the imposition of penalties without disclosing the materials violated the principles of natural justice.

Consequently, the court quashed the orders (exhibits P3, P5, and P6) imposing penalties on the petitioners. The first respondent was directed to disclose the reports or at least their contents mentioned in the notices, and to reconsider the matter after affording the petitioners an opportunity of hearing. The court emphasized the importance of following natural justice principles and instructed the first respondent to re-examine the issue promptly. The writ petitions were disposed of accordingly.