Discretionary penalty remission need not involve hearing or reasons where no civil right is adjudicated.

Under section 13(2A) of the Karnataka Sales Tax Act, the State Government's power to remit penalty is discretionary and does not create an enforceable right for the defaulting assessee to demand notice or an opportunity of hearing before the request is decided. The provision was treated as one that does not involve adjudication of civil rights, so the principles of natural justice were held inapplicable in this context. The refusal to waive penalty also need not be a speaking order recording reasons. On that basis, the challenge to the Government's rejection of the waiver application failed.

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Issues: Whether an application for waiver of penalty under section 13(2A) of the Karnataka Sales Tax Act required notice and an opportunity of hearing, and whether the refusal to waive penalty had to be a speaking order.

Analysis: Section 13(2A) confers power on the State Government to remit the whole or any part of the penalty. The power is discretionary and does not create a right in the defaulting assessee to insist on a hearing before the request is decided. The rule of natural justice was held inapplicable to the vacation of stay in such a case. The provision also does not contemplate an adjudication of civil rights, and therefore the refusal to grant waiver need not record reasons as a speaking order.

Conclusion: No notice or hearing was required, and the rejection of the waiver application was not invalid for want of reasons.

Final Conclusion: The challenge to the Government's order failed, and the petition was dismissed.

Ratio Decidendi: Where a statute confers a discretionary power of remission of penalty without adjudicating civil rights, the applicant has no enforceable right to a hearing, and the refusal need not be a speaking order.

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