Penalty for non-registration cannot rest on an uninvoked provision without notice or opportunity to answer the alternative case.

A penalty for non-registration could not be sustained where the dealer was outside the provision invoked in the penalty order and was not given notice or an opportunity to meet the case under the alternative provision. The dealer had commenced business before the relevant assessment year and was therefore not covered by clause (d) of section 8-A(1). The revenue attempted to support the penalty under clause (c), but that ground had not been raised before the lower authorities. In a penal matter, liability cannot be affirmed on a statutory basis that was neither invoked nor put to the assessee for explanation, and the assessee succeeded.

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Issues: Whether the penalty for non-registration could be sustained when the dealer was not covered by the provision invoked in the penalty order and no notice or opportunity was given to meet the case under the alternative provision.

Analysis: The dealer had commenced business before the relevant assessment year and was, therefore, not covered by clause (d) of section 8-A(1). The revenue sought to support the penalty under clause (c), but that basis had not been raised before the authorities below and the dealer had no occasion to answer it. In a penal matter, an order cannot be sustained on a provision that was neither invoked nor put to the dealer for explanation.

Conclusion: The penalty could not be upheld on the alternative provision, and the assessee succeeded.

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