2024 (12) TMI 1295 - SCH - VAT / Sales Tax

Challenge to order of penalty passed under the APVAT Act, 2005 - without issuing a SCN the order of penalty came to be passed - violation of principles of natural justice - HELD THAT - It is failed to understand the basis for the revenue to challenge such orders before this Court. It has been fairly conceded before us that the order of penalty was passed without issuing any show cause notice. What is more disturbing is that instead of accepting the order passed by the High Court and issuing a show cause notice so as to give an opportunity to the assessee to show cause as regards the penalty, the revenue has wasted six years in this litigation which is now coming to end with the dismissal of this petition. Petition dismissed.

Summary

The Supreme Court of India considered a case involving a challenge to a penalty order under the APVAT Act, 2005, where the penalty was imposed without issuing a show cause notice. The High Court had quashed the penalty order in favor of the assessee. The revenue appealed to the Supreme Court, which questioned the basis for the challenge as the penalty was indeed imposed without a show cause notice. The Court criticized the revenue for not accepting the High Court's decision and unnecessarily prolonging the litigation for six years. The Court dismissed the petition, allowing the revenue to issue a fresh show cause notice if legally permissible.