Penalty proceedings: show cause notice and automated allocation lead to draft penalty order or dropping, with NFAC communication. Penalty proceedings allow an appeal unit to recommend initiation of penalty for non compliance; the National Faceless Appeal Centre serves a show cause notice and receives any response. NFAC assigns the matter by automated allocation to a Regional appeal unit, which either drafts a penalty order or drops the penalty with recorded reasons. NFAC then issues or intimates the outcome and notifies the appellant and the National Faceless Assessment Centre or Assessing Officer for necessary action.