2024 (5) TMI 409 - HC - VAT and Sales Tax

Waiver of penalties imposed for late deposit of tax u/s 54(1)(1)(a) of the U.P. V.A.T Act, 2008 - application for waiver were rejected by Revenue - opportunity of hearing not granted - violation of principles of natural justice - HELD THAT - The orders passed by the revenue authorities appear to be defective. While the petitioner may be allowed to amend the writ petition and formally seek proper relief, it is also noted that the above orders have been passed by the revenue authorities without affording opportunity of hearing to the petitioner. Thus, no useful purpose may be served in keeping the writ petition pending or calling for Counter Affidavit at this stage, especially in view of the order proposed to be passed. Purely in the interest of justice and on prima facie consideration, it appears, the penalty sought to be waived was penalty imposed for late deposit of tax. Therefore, impugned ex parte orders rejecting the petitioner's applications seeking waiver of penalty dated 23.12.2020 are set aside. A direction is issued to the respondent no. 4 to pass a fresh order on the petitioner's application after affording due opportunity of hearing to the petitioner. Such compliance may be made within a period of three months from today. Petition disposed off.

Summary

Issues involved:
The judgment addresses the enforcement of rights under the Interest Waiver Scheme, 2021 introduced by the State Government for waiver of penalties under various tax acts. The main issue was the rejection of individual applications seeking waiver of penalty without affording the petitioner an opportunity of hearing.

Enforcement of Interest Waiver Scheme:
The petitioner filed a writ petition to enforce rights under the Interest Waiver Scheme, 2021 for waiver of penalties under different tax acts. The petitioner's application seeking waiver of penalty for Assessment Year, 2015-16 / 2016-17 was pending. The court directed the competent authority to decide on the petitioner's application seeking waiver of penalty.

Rejection of Penalty Waiver Applications:
The revenue authorities rejected the individual applications seeking waiver of penalty, specifically under Section 54(1)(1)(a) of the U.P. V.A.T Act, 2008 without providing an opportunity of hearing to the petitioner. The orders were found to be defective as they were passed without affording the petitioner a chance to present their case.

Court's Decision and Order:
The court set aside the impugned ex parte orders rejecting the petitioner's applications seeking waiver of penalty and directed the respondent to pass a fresh order after affording due opportunity of hearing to the petitioner within three months. The court emphasized that if the petitioner is entitled to relief on merit, it should not be denied solely based on the time passed. The writ petition was disposed of in the interest of justice.