2010 (7) TMI 989 - HC - VAT and Sales Tax

Levy of penalty - Food and beverages provided to passengers on board the trains - whether amounts to sale or provision of service - natural justice - Held that - petitioners have not been given an opportunity of hearing prior to such levy - the petitioner ought to have been given an opportunity of hearing before the penalty orders could have been passed - the penalty orders set aside in these writ petitions and matter remitted to the Value Added Tax Officer to pass appropriate orders in accordance with law after giving an opportunity of hearing to the petitioner - appeal allowed by way of remand.

Summary

The Delhi High Court found the petitioner liable to pay Value Added Tax for food and beverages on trains. The court set aside penalty orders as the petitioner was not given a hearing, remitting the matter for reconsideration by the Value Added Tax Officer within three months.