Statutory hearing requirement before penalty invalidated a notice that allowed only written explanation without oral hearing.

Section 15-A(3) required that no penalty order be made unless the dealer was heard or given a reasonable opportunity of being heard. A show-cause notice that only called for a written explanation within eight days, without fixing a hearing date or offering oral hearing, did not satisfy that safeguard. In a penal provision, strict compliance with the hearing requirement was necessary, and a written reply was not an adequate substitute for the hearing mandated by law. The penalty order was therefore invalid for non-compliance with section 15-A(3).

---

---

Issues: Whether the penalty order under section 15-A was vitiated for non-compliance with the requirement that the dealer be heard or be given a reasonable opportunity of being heard.

Analysis: Section 15-A(3) required that no penalty order be made unless the dealer had been heard or had been given a reasonable opportunity of being heard. The notice issued under the proviso to section 15-A(1)(c) merely called upon the assessee to show cause within eight days why penalty should not be imposed. It did not fix any date for appearance, did not offer any opportunity of oral hearing, and could not be treated as a composite notice satisfying both the proviso and sub-section (3). In a penal provision, strict compliance with the statutory safeguard was necessary, and the written explanation filed by the assessee was not an adequate substitute for the hearing mandated by law.

Conclusion: The requirement of section 15-A(3) was not complied with, and the penalty order was invalid.

---